Ella 
USD/CAD came under selling pressure below the 1.3500 mark in early European trading on Tuesday. A surge in oil prices boosted the commodity currency Canadian dollar against the U.S. dollar. The currency pair is currently down 0.07% at 13476. Market participants are awaiting Canadian inflation data for August ahead of Wednesday’s much-anticipated Federal Reserve interest rate decision.
According to the 1-hour chart, USD/CAD remains below the declining 50 and 100 hourly EMAs, supporting bears for now. In addition, the RSI is below 50, stimulating the downward momentum of the currency pair.
The key resistance level is the 1.3500-1.3510 area where the 50 hour EMA, the psychological round number mark and the top of the Bollinger Channel converge. Any follow-through buying above this level will pave the way towards the 100 hourly EMA at 1.3520. The upper resistance focuses on the psychological level of 1.3586, the high point on September 13, and 1.3600.
On the downside, the lower track of the Bollinger Channel at 1.3470 serves as the initial support level. A break below this level would see the pair fall to 1.3445 (low of August 15). Further below, the next target is the August 11 low of 1.3412.
