USD/CAD Price Analysis: The pair has reversed slightly after some weakness in oil and risk assets

• USD/CAD is now trading 0.11% lower but it could have been much worse. 
• The pair has recovered somewhat to print above 1.34.

USD/CAD 4-hour chart

USD/CAD has pulled back somewhat over the last couple of hours leading into the US close on Thursday. There has been a risk-off feel to the session as a bout of negative headlines hits the newswires. The pair has been in a decent downtrend making lower highs and lower lows and this could be the point where a short to medium-term retracement begins. 

Looking closer at the chart, the bulls stepped in at the 1.3350 level. On the plus side for the bears, there is a resistance level at the green line at just under 1.3450. The stronger resistance zone is higher up at 1.35 and it was the consolidation low of the previous distribution. 

The indicators are very bearish at the moment with the Relative Strength Index holding in the oversold area. The MACD histogram is still red and the signal lines are under the zero level. Because the Relative Strength Index is overextended it could mean that there is a small pullback on the cards and in this case the resistance lines will become more important. 

Additional levels