• USD/CAD trades on a weaker note near 1.3635 in Tuesday’s early European session. 
• The pair maintains a negative stance below the 100-period EMA, with the bearish RSI momentum indicator. 
• The initial contention level will emerge near 1.3600; the first upside barrier is seen at 1.3650.

The USD/CAD pair remains on the defensive around 1.3635 during the early European session on Tuesday. The Greenback weakens on the back of the potential September rate cut from the US Federal Reserve (Fed) after employment data last week indicated a cooling US labor market. 

According to the 4-hour chart, USD/CAD keeps the bearish vibe unchanged below the key 100-period Exponential, Moving Average (EMA). Furthermore, the downward momentum is supported by the Relative Strength Index (RSI), which stands near in the bearish zone near 45.70. This indicates that the path of least resistance level is to the downside.    

The potential support level for the pair will emerge near 1.3600, portraying the confluence of the lower limit of the Bollinger Band and the psychological level. A breach of this level will see a drop to 1.3556, a low of April 10. The additional upside filter to watch is 1.3515, a low of April 1. 

On the other hand, the immediate resistance level is seen at 1.3650, the upper boundary of the Bollinger Band. A decisive break above this level will pave the way to 1.3672, the 100-period EMA. Any follow-through buying could see a rally to 1.3712, a high of June 27. 
 

USD/CAD 4-hour chart

(Click on image to enlarge)

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