USD/CAD Price Analysis: Again eases above 1.3500, weekly support line in focus
|- USD/CAD fails to stretch pullback moves from 1.3493 beyond 1.3522.
- Bearish MACD, failures to regain above 1.3500 favor the sellers.
- Oversold RSI might trigger another U-turn from the immediate trend line support.
USD/CAD drops to 1.3510 during the initial hour of Tokyo open on Thursday. In doing so, the pair defies recoveries from 1.3493, following a U-turn from 1.3522. The loonie pair declines to a 12-day low the previous day. However, oversold RSI conditions and a falling trend line from July 01 restricted the quote’s downside despite bearish signals from the MACD.
Against this backdrop, the quote is likely to extend near-term weakness towards revisiting the immediate support line, currently around 1.3495.
However, oversold RSI conditions could restrict further downside around 1.3490/85 area comprising the late-June lows.
On the upside, a clear break above 1.3525 can aim for 1.3560 and 200-HMA level of 1.3593 before attacking 1.3600 round figure.
During the pair’s sustained rise past-1.3600 mark, the current monthly near 1.3625 will be the key to watch.
USD/CAD hourly chart
Trend: Bearish
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