USDCAD Chart Technical Outlook on H2 time frame.
USD/CAD bears eye 1.3587 after breaking below 4h-50 SMA on US rate cut hopes
The Canadian Dollar is somewhat correlated to Oil prices, as the nation is an exporter of the black stuff – but that is only one reason USD/CAD is falling. Crude oil prices are off the lows, and that supports the loonie.
The more important factor is broad US Dollar weakness, based on hopes that Friday’s core PCE figure shows moderating inflation.
USD/CAD dropped below the 4h-50 SMA which held it up in previous days, and also broke below support at 1.3644. The next line of support is 1.3587, and then 1.3547. Resistance is at 1.3644, then 1.3698, which is defended by the 4h-200 SMA. The broad trend is sideways, but bears have now taken control.
