USD/CAD Price Analysis: Bounces off 200-HMA to stay above 1.3400
|- USD/CAD picks up the bids towards the weekly high near 1.3460.
- Key Fibonacci retracement levels to challenge the bulls.
- Bears may attack 1.3315 support during the fall below 200-HMA.
USD/CAD rises to 1.3430, up 0.07% on a day, before the European session begins on Friday. The loonie pair recently took a U-turn from 200-HMA while reversing the previous day’s pullback from 1.3460.
Although MACD conditions challenge the latest recovery in USD/CAD prices, sustained trading beyond the key HMA enables the quote to challenge the previous day’s top, also the weekly high, around 1.3460.
During the pair’s further rise past-1.3460, 50% and 61.8% Fibonacci retracements of July 20-28 fall, respectively near 1.3470 and 1.3500, will challenge the bulls before diverting them to the monthly high around 1.3640.
Meanwhile, a downside break of a 200-HMA level of 1.3406 will need to slip below 1.3400 to attack the weekly bottom around 1.3330.
Also challenging the bears will be the lows marked in March and June months surrounding 1.3315, as well as 1.3500 round-figures.
USD/CAD hourly chart
Trend: Pullback expected
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