On the daily time frame, USD/CAD is moving downward, supported by a descending trend line that starts from the March high at the 1.3862 level. USD/CAD has been under pressure recently as US Dollar weakness has been widespread since last week, even as crude oil prices are decreasing.
Having maintained a downward trend for USD/CAD for the past few days, the pair has found support just above the previous day's low at 1.3644 level, just above the 21-Daily Moving Average (DMA). The pair will likely head toward 1.3600, which is a key support level and round figure mark, in the event that both the 21-DMA and the previous day's low are convincingly broken.
At this time, the 50-DMA is the last area of support, and it is currently pegged at around the psychological level of 1.3500 the key psychological level.
When USD/CAD breaks above the downward-sloping trendline, it will move toward the March high as well as the USD/CAD resistance line. USD/CAD has found resistance at the downward-sloping trendline, which is a resistance point for a period of many years. There is a multi-year high around the 1.4000 mark, which indicates there is still a lot more downside room for the pair, based on the Relative Strength Index (RSI).
Any bearish development in the pair from the Federal Reserve (Fed) is likely to pave the way for the 50-day moving average to be tested. However, the pair is likely to fall back to its 50-day moving average if the Fed makes at least one more policy decision.
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