fxs_header_sponsor_anchor

News

USD/CAD Price Analysis: Extends pullback from short-term key resistance to 1.3600

  • USD/CAD holds lower ground during two-day retreat from monthly high.
  • Bearish MACD signals add strength to pullback moves targeting previous resistance line.
  • Loonie pair’s recovery needs validation from April’s peak.

USD/CAD remains mildly offered near 1.3600 as it defends the previous day’s U-turn from a one-month high during Monday’s sluggish Asian session, especially amid the holidays in the US.

That said, the Loonie pair’s latest weakness justifies its inability to cross a two-month-old descending resistance line, around 1.3650 by the press time. Adding strength to the downside bias are the bearish MACD signals.

With this, the USD/CAD sellers are all set to prod the previous resistance line stretched from early March, close to 1.3550. However, a convergence of the 50-SMA and a three-week-old support line, near 1.3535 at the latest, could challenge the Loonie pair’s further downside.

Even if the quote breaks the 1.3535 support confluence, the 200-SMA level of around 1.3500 can act as the last defense of the USD/CAD buyers before giving control to the Loonie pair bears.

On the contrary, the aforementioned two-month-old resistance line, close to 1.3650, restricts the immediate upside of the pair ahead of the previous monthly high of around 1.3665-70.

Following that, the late March swing high near 1.3700 may act as an additional check for the USD/CAD buyers before targeting the yearly high marked in March around 1.3860.

Overall, USD/CAD is likely to witness further downside but the room towards the south is limited.

USD/CAD: Four-hour chart

Trend: Limited downside expected

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.