The dollar has sold off again against all the majors accept the major commodities currencies

USD/CAD trades 0.82% higher despite greenback weakness elsewhere.
Only AUD and CAD remain weaker against the greenback on Thursday.

USD/CAD 4-hour chart

Commodities have been on a bearish path today as WTI trades 2.8% lower on Thursday. This has led CAD to underperform relative to its peers as almost all the other majors (excluding AUD) have recovered from USD strength earlier in the session. The USD has had a mixed reaction to the FOMC statement from last night and the accompanying press conference where Fed Chair Powell suggested data is showing that the recovery has stalled since June.

Looking closer at the chart, the price is heading toward the key resistance zone just under 1.35. There are some other resistance lines with the downward sloping blue trendline close by too. On the downside, the key support zone is at 1.3315. This is the low on the chart and if the downtrend continues this could be an important zone.

The indicators have now turned bullish again. The MACD histogram is back in the green and the signal lines are testing the mid-zone again. The Relative Strength Index is now above 50 but any move into an overbought territory could be bearish as a failure swing divergence could form.

Overall the market is still in a downtrend on the higher timeframes. If this is to be the reversal a higher low could be made on this timeframe (4-hr). For now, if the trend is to continue the red horizontal line at the bottom of the chart would need to be broken but the fact that this pair has held up whilst the other changed to a more familiar story doesn’t bode well for CAD.