USD/CAD Price Analysis: Revisits 1.3700 mark, as the market awaits Fed decision

• USD/CAD retraces to the multi-tested descending trendline. 
• USD/CAD under pressure despite falling oil prices. 
• The expectation for 25 bps is rising for the Fed meeting.

USD/CAD is sliding downward, supported by a descending trend line that starts from the March high at the 1.3862 level on the daily timeframe. The broad-based US Dollar weakness since last week keeps USD/CAD under pressure despite falling oil prices.

Maintaining a downside bias for USD/CAD, the pair finds support on the 21-Daily Moving Average (DMA) just above the previous day's low at the 1.3644 level. Upon a convincing break of both the 21-DMA and the previous day's low, the pair is likely to head toward the key support level and round figure mark of 1.3600.

The last support area will be the 50-DMA, currently pegged around the 1.3500 key psychological level as of now.

The pair finds resistance at the downward-sloping trendline, and a break above would take USD/CAD toward the 1.3800 mark, followed by the March high. The last known resistance is a multi-year high around the 1.4000 mark. The Relative Strength Index (RSI) is signaling lower lows, suggesting further downside room for the pair.

USD/CAD is quietly awaiting the upcoming Federal Reserve (Fed) policy decision for the next directional clues. Any bearish development for the pair from the Fed is likely to pave the way for the 50-DMA.

USD/CAD: Daily chart