USD/CAD Price Analysis: Bears look for entries below nine-week-old support line
|- USD/CAD remains depressed after refreshing two-week low the previous day.
- Sustained trading below short-term SMAs, normal RSI conditions favor sellers.
USD/CAD eases to 1.3130 during the initial Asian session on Thursday. The pair dropped to the fresh lows since October 21 on Wednesday but couldn’t successfully break an upward sloping trend line from September 01.
However, the inability to rise past-21-day and 50-day SMAs join the absence of oversold RSI conditions to suggest the quote’s further downside.
Hence, USD/CAD bears are waiting for a clear break of the stated support line, at 1.3107 now, for fresh entries. It should be noted that the 1.3100 threshold can offer an additional filter to the south.
During the pair’s weakness past-1.3100, the previous month’s low near 1.3080 and 1.3040 support can offer an intermediate halt before highlighting September’s bottom close to 1.2995 for the USD/CAD sellers.
Alternatively, a daily closing beyond the 50-day SMA level of 1.3206 becomes necessary for the buyers to enter.
Following that the 1.3300 round-figure and the late-October top near 1.3390 should be in the spotlight.
USD/CAD daily chart
Trend: Bearish
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