Ella 
USD/CAD fell for two days in a row. The dollar was lower against major currencies on the back of poor U.S. PMI performance and a drop in U.S. bond yields. The pair is currently trading around 1.3527, up 0.01% on the day.
Growth in U.S. business activity slowed in August. The country’s S&P Global Composite PMI fell to 50.4 in August, compared with the previous value of 52.0, which was lower than market expectations of 52.0. This is the largest drop since November 2022. Meanwhile, U.S. Treasury yields have retreated from multi-year highs, falling below 4.20%.
From a technical point of view, USD/CAD is holding below the 100 hourly EMA, implying further losses for the pair. Meanwhile, the RSI sits below 50, temporarily activating the pair’s downside momentum.
If follow-up buying pushes the price above 1.3535, the exchange rate will rise further. The above-mentioned levels include the Bollinger Band and the 100-hour EMA. The next upside target is 1.3575 (18 Aug high, upper Bollinger Band), then the psychological level of 1.3600. Above that, the pair will rise to 1.3650 (31 May high).
On the downside, the key support area is in the 1.3495-1.3500 area, which is where the psychological integer and the lower rail of the Bollinger Channel are located. For further declines, watch for 1.3475 (16 Aug low) and 1.3445, 15 Aug low, and 1.3410 (11 Aug low).
