USD/CAD Price Analysis: Bears attack eight-month-old support near 1.3290
|- USD/CAD licks its wounds after refreshing 11-week low.
- Bearish MACD signals, sustained trading below 21-DMA keeps sellers hopeful.
- 200-DMA, 1.3210 level act as the last defenses for the buyers.
USD/CAD jostles with a key support line after refreshing the multi-month low on the Federal Reserve’s (Fed) dovish hike, making rounds to 1.3290 during early Thursday morning in Asia. In doing so, the Loonie pair portrays sustained trading below the 21-DMA while also justifying the bearish MACD signals and downbeat RSI, not oversold.
It’s worth noting that an ascending trend line from June 2022, close to 1.3290 at the latest, challenges the pair sellers of late.
The major attention, however, should be given to the horizontal area comprising multiple levels marked since mid-July 2022 and the 200-DMA, between 1.3225 and 1.3210.
In a case where the USD/CAD pair stays weak below 1.3210, the 1.3200 round figure may act as an extra filter towards the south before directing prices towards the 1.3000 psychological magnet. It should be observed that June 2022 peak surrounding 1.3080 may offer an intermediate halt during the slump past 1.3200.
Meanwhile, USD/CAD recovery remains elusive until the quote remains below the 21-DMA hurdle of 1.3390.
Following that, the late January swing high near 1.3520 and the previous monthly top surrounding 1.3685 will be in focus.
Though, the USD/CAD bull-run needs validation from the December 2022 peak of 1.3705.
Overall, USD/CAD remains on the bear’s radar but the downside room appears limited.
USD/CAD: Daily chart
Trend: Limited downside expected
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