USD/CAD Price Analysis: Justifies Friday’s Doji to drop towards 200-DMA below 1.3500

USD/CAD takes offers to refresh intraday low, defends the previous week’s downbeat performance.
Loonie pair remains pressured between 100-DMA and 200-DMA.
Bearish candlestick formation, unimpressive oscillators suggest further grinding of USD/CAD price.
Descending resistance line from early March, two-week-old rising support line act as additional downside filters.

Anil Panchal FXStreet

USD/CAD renews its intraday low near 1.3490 during early Monday morning in Europe. In doing so, The Loonie pair justifies Friday’s Doji candlestick, as well as a steady RSI (14) line and bullish MACD signals.

With this, the USD/CAD pair is likely to remain sidelined between the 100-DMA and 200-DMA, respectively near 1.3510 and 1.3480.

It’s worth noting that the Loonie pair’s downside break of 1.3480 allows it to take a chance about further bearish bias over the USD/CAD pair as it needs to cross a two-week-old upward-sloping support line, close to 1.3475 by the press time.

Following that, the USD/CAD fall towards the 1.3400 round figure and then to the yearly low of around 1.3300 can’t be ruled out.

On the flip side, a daily closing beyond the 100-DMA hurdle of around 1.3510 isn’t an open welcome to the USD/CAD bulls as a downward-sloping resistance line from March, close to 1.3550, appears a tough nut to crack for the pair buyers.

In a case where the USD/CAD manages to stay firmer beyond 1.3550, a gradual run-up toward the previous monthly low of around 1.3665 can’t be ruled out.

Overall, USD/CAD is likely to remain sidelined but the bears have upper hand of late.

USD/CAD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.3497
Today Daily Change	-0.0008
Today Daily Change %	-0.06%
Today daily open	1.3505

Trends
Daily SMA20	1.3512
Daily SMA50	1.3541
Daily SMA100	1.351
Daily SMA200	1.3477

Levels
Previous Daily High	1.3524
Previous Daily Low	1.3469
Previous Weekly High	1.3568
Previous Weekly Low	1.3404
Previous Monthly High	1.3668
Previous Monthly Low	1.3301
Daily Fibonacci 38.2%	1.3503
Daily Fibonacci 61.8%	1.349
Daily Pivot Point S1	1.3474
Daily Pivot Point S2	1.3444
Daily Pivot Point S3	1.3419
Daily Pivot Point R1	1.353
Daily Pivot Point R2	1.3554
Daily Pivot Point R3	1.3585

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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