USD/CAD Price Analysis: Reclaims 1.3550 on firmer USD index and a sell-off in oil price

• USD/CAD is looking to recapture the immediate resistance of 1.3550 amid a dismal market mood.
• An intense sell-off in the oil price after a heavy buildup of oil inventories reported by US API has impacted the Canadian Dollar.
• The RSI (14) is eyeing a break into the bullish range of 60.00-80.00 after a period of four months.

The USD/CAD pair is attempting to recapture the critical resistance of 1.3550 in the early Tokyo session. The Loonie asset witnessed a minor correction after a vertical upside move post hawkish Federal Open Market Committee (FOMC) minutes. The upside bias is still favored as the risk appetite of the market participants has weakened dramatically.

S&P500 futures are demonstrating marginal gains after a choppy trading session. The US Dollar Index (DXY) is aiming to test Friday’s high around 104.33 as investors have underpinned the risk-aversion theme.

Meanwhile, the oil price has refreshed its two-week low at $73.80 after the United States American Petroleum Institute (API) reported bumper oil stockpiles at 9.985 million barrels for the week ending February 17.

USD/CAD has overstepped the 61.8% Fibonacci retracement (placed from December 16 high at 1.3705 to February 2 low at 1.3262) at 1.3536 on a daily scale. The Loonie asset has also crossed the downward sloping trendline plotted from October 13 high at 1.3978, which indicates more upside ahead.

The 20-and 50-period Exponential Moving Averages (EMAs) are on the verge of delivering a bullish crossover at around 1.3445, which will be added to the upside filters.

Also, the Relative Strength Index (RSI) (14) is eyeing a break into the bullish range of 60.00-80.00 after a period of four months. An occurrence of the same will accelerate the upside momentum.

The Loonie asset might record more gains after surpassing February 22 high at 1.3568, which will drive the asset toward the round-level resistance at 1.3600 followed by November 29 high at 1.3645.

Alternatively, a break below February 6 high at 1.3474 will drag the asset to near 38.2% Fibo retracement at 1.3432. A slippage below the same will expose the asset to January 26 high of around 1.3408.

USD/CAD daily chart