USD/CAD Price Analysis: Climbs to near 1.3200 amid sheer strength in US Dollar and weak oil prices

• USD/CAD has jumped to 1.3200 amid solid appeal for the USD Index due to a bleak global outlook.
• The US Dollar Index has climbed to near 103.00 amid the risk-aversion theme.
• USD/CAD is auctioning in a Falling Channel pattern in which each pullback is considered a selling opportunity.

The USD/CAD pair has jumped sharply to near the round-level resistance of 1.3200 in the London session. The Loonie asset has picked significant bids as the US Dollar Index (DXY) is showing severe resilience and the oil prices are dropped sharply.

Oil prices are facing the heat as hawkish central banks have threatened global economic prospects. It is worth noting that Canada is the leading exporter of oil to the United States and weak oil prices impact the Canadian Dollar.

The US Dollar Index (DXY) has climbed to near 103.00 amid tailwinds of the risk-aversion theme. Also, hawkish Federal Reserve (Fed) bets have strengthened the appeal for the US Dollar.

USD/CAD is auctioning in a Falling Channel chart pattern on an hourly scale in which each pullback is considered a selling opportunity by the market participants. The 100-period Exponential Moving Average (EMA) at 1.3196 is acting as a stiff barricade for the US Dollar bulls.

Contrary to that, the Relative Strength Index (RSI) (14) has stepped into the bullish range of 60.00-80.00, however, the downside risks are still elevated.

Going forward, a downside move below June 16 low at 1.3177 could expose the asset to June 22 low at 1.3139 followed by the round-level support at 1.3100.

On the flip side, a decisive move above June 15 high at 1.3355 would drive the asset to June 12 high at 1.3384 and June 06 high at 1.3452.

USD/CAD hourly chart