Anna 
The USD/CAD pair continued its downtrend for the second consecutive session, edging lower to approach the 1.3470 level during the European session on Tuesday. The prevailing cautious sentiment among traders is attributed to the upcoming release of the Consumer Price Index (CPI) data from the United States (US).
Key support for the USD/CAD pair is anticipated at the major level of 1.3450, followed by the 38.2% Fibonacci retracement level at 1.3442. A breach below this level could intensify downward pressure, leading the pair towards the support region encompassing the previous week’s low of 1.3419 and the psychological level of 1.3400.
The technical analysis based on the 14-day Relative Strength Index (RSI) suggests bearish momentum for the USD/CAD pair, as the RSI is positioned below 50. However, the Moving Average Convergence Divergence (MACD) indicates a potential shift in momentum. The MACD line is above the centerline but diverges below the signal line, hinting at a potential change in direction. Traders are likely to await confirmation from the lagging MACD indicator to ascertain the USD/CAD pair’s directional trend.
On the upside, immediate resistance levels include the psychological barrier of 1.3500 and the nine-day Exponential Moving Average (EMA) at 1.3506. A breach above the latter level could provide upward support, paving the way for the USD/CAD pair to test the major level of 1.3550. Further upside momentum might target the region around the psychological level of 1.3600, aligning with March’s high of 1.3605.
