USD/CAD Price Analysis: 200-HMA guards immediate downside below 1.3600
|- USD/CAD recedes from 1.3580 but stays above near-term key moving average.
- Bullish MACD signals also favor the buyers expecting to confront 61.8% Fibonacci retracement level.
- A resistance-turned-support line from July 14 increases hardships for the bears.
USD/CAD eases to 1.3575 during Friday’s Asian session. Even so, the pair seesaws around 50% Fibonacci retracement of July14-16 fall while also saying beyond 200-HMA. Also confirming the bullish bias is the MACD histogram and the quote’s sustained trading beyond a descending trend line from Tuesday.
As a result, the buyers can portray another attempt to cross 1.3600 round-figures with a 61.8% Fibonacci retracement level of 1.3590 acting as immediate resistance.
During the pair’s sustained rise past-1.3600, 1.3630 and the monthly high near 1.3645/50 become the key as a break of which will recall June 26 top near 1.3715.
Meanwhile, a downside break of 200-HMA can’t be considered as a green signal for the bears as the resistance-turned-support line, currently around 1.3530, raises the bars for sellers.
Should there be extended weakness below 1.3530, 1.3500 and June 23 low near 1.3485 will return to the charts.
USD/CAD hourly chart
Trend: Recovery expected
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