USD/CAD Price Analysis: Bears approach multi-month-old support near 1.3470
|- USD/CAD seesaws around five-week low after four-day downtrend.
- Clear break of 50-DMA, downbeat oscillators keep sellers hopeful.
- Ascending support line from June 2022 appears the key challenge for Loonie bears.
- Buyers have a bumpy road on the way to retake control.
USD/CAD sellers flirt with 1.3520-25, after declining to the lowest levels since February 22, as markets turn dicey on Friday ahead of the key inflation data from the US. In doing so, the Loonie pair prints minor losses during the five-day losing streak.
Even so, the pair’s successful downside break of the 50-DMA joins bears MACD signals to keep the sellers hopeful. Adding strength to the bearish bias is the absence of the oversold RSI (14) line.
It’s worth noting, however, that an upward-sloping support line from early June 2022, close to 1.3475 by the press time, appears a tough nut to crack for the USD/CAD bears to watch during the further downside. Also highlighting the importance of the 1.3475 level is the RSI’s fall below the 50 level as it suggests the likely dip-buying around the key support line.
In a case where the Loonie pair breaks the 1.3475 support, the 200-DMA and an ascending trend line from mid-November 2022, respectively near 1.3375 and 1.3295, could challenge the bears afterward.
On the contrary, recovery moves need validation from the 50-DMA resistance of 1.3545 to convince short-term USD/CAD buyers.
However, the mid-month low around 1.3650-55 and December 2022 tops surrounding 1.3705 can challenge the Loonie pair’s further upside before highlighting the previous yearly top of 1.3977.
USD/CAD: Daily chart
Trend: Further 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.