USD/CAD juggles near Friday’s low around 1.3650 as trading volume is low due to holiday in US markets. Traders pare bets supporting Fed rate cuts in September. The BoC is widely anticipated to start reducing interest rates from June. The Loonie asset is on the backfoot as the US Dollar faces selling pressure in a thin trading volume session as the United States markets are closed on account of Memorial Day.
USD/CAD trades in a Descending Triangle chart formation on a daily timeframe, which exhibits a sharp volatility contraction. The downward-sloping border of the above-mentioned chart pattern is plotted from April 16 high at 1.3846 while the horizontal support is marked from March 25 high near 1.3570. The Loonie asset remains sticky to the 20-day Exponential Moving Average near 1.3670, suggesting a sideways trend. The 14-period Relative Strength Index oscillates in the 40.00-60.