By Ketki Saxena
Investing.com -- The Canadian dollar weakened against the greenback today, hovering close to its recent two and a half month low as crude prices fell on worries of a slowdown in China, and as downbeat sentiment in equities pressured the risk-sensitive loonie.
Meanwhile, the US dollar strengthened against a basket of major currencies as traders await comments from US Federal Reserve Chairman Jerome Powell later this week at the central bank's symposium in Jackson Hole, Wyoming.
On a technical level for the pair, analysts at FX Street note "The USD/CAD displays a short-term bullish outlook. Nevertheless, traders should take caution due to the emergence of overbought signals, which may lead to a technical correction in the near term."
"The Relative Strength Index (RSI) is in overbought territory above 70.00, while the Moving Average Convergence (MACD) histogram exhibits more oversized green bars. In addition, the pair is above the 20,100,200-day Simple Moving Averages (SMAs), indicating a favourable position for the bulls in the bigger picture."
They note that support levels stand at 1.3530, 1.3500, 1.3490, while resistance is at 1.3570, 1.3590, 1.3600.
Up next for the pair, traders will await Canadian retail sales data for June due tomorrow.
On the US economic docket, the manufacturing and services sector PMIs from August are out tomorrow.