USD/CAD Price Analysis: Multiple Doji candlesticks suggest Loonie trader’s indecision within key DMA envelope
- USD/CAD remains sidelined between 21-DMA and 10-DMA, fades bounce off intraday low recently.
- Multiple Doji candlestick portrays the Loonie trader’s indecision near the lowest levels since September 2022.
- Bullish MACD signals, higher low formation suggest buyers flexing muscles.
- Sellers need validation from 1.3165; buyers may wait for 1.3340 breakout for conviction.
USD/CAD stays defensive for the fourth consecutive day around 1.3250 heading into Tuesday’s European session.
The Loonie pair’s latest inaction could be linked to the US Independence Day holiday and the cautious mood ahead of the key Canadian catalysts. That said, Bank of Canada’s (BoC) Business Outlook Survey and June’s readings of S&P Global Manufacturing PMI appear crucial to watch for clear directions.
That said, multiple Doji candlestick portrays the Loonie pair’s inaction within the 21-DMA and 10-DMA, respectively around 1.3260 and 1.3210 in that order.
However, the recent higher lows and bullish MACD signals suggest the USD/CAD pair’s recovery past the 1.3260 hurdle comprising the 21-DMA.
Even so, the previous support line from November 15, 2022, around 1.3340 at the latest, becomes crucial to convince the Loonie pair buyers.
On the flip side, a daily closing beneath the 10-DMA support of 1.3210 will need validation from the 1.3200 round figure and the latest multi-month low around 1.3165, marked the last week, to renew the bearish bias about the Loonie pair.
Following that, the 1.3000 psychological magnet and September 2022 low near 1.2965 will be in the spotlight.
USD/CAD: Daily chart
Trend: Builds upside momentum
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.
