USD/CAD Price Analysis: Bulls have a bumpy road above 1.3400
|- USD/CAD struggles to keep bounce off 200-HMA.
- Multiple falling trend lines, the key Fibonacci retracements question the pullback.
- Further selling could take place below Friday’s low.
USD/CAD eases to 1.3400, down 0.10% on a day, during Monday’s Asian session. The loonie pair bounced off 200-HMA on Friday but lacks upside momentum under an ascending trend line stretched from last Thursday. The lack of strength joins sluggish MACD, which in turn signals the pair’s weakness.
However, sellers are less likely to look for entries unless the quote slips below Friday’s low of 1.3372, which in turn will attack the monthly low near 1.3330.
During the quote’s further weakness past-1.3330, lows marked in March and June months around 1.3315, followed by 1.3300 round-figures will be the key to watch.
Alternatively, an upside clearance of immediate resistance line near 1.3422 will escalate the recovery moves to another falling trend line resistance from July 22, at 1.3455 now.
Also acting as the north-side barriers are 50% and 61.8% Fibonacci retracement of the pair’s fall from July 20 to 28, respectively around 1.3465 and 1.3500.
USD/CAD hourly chart
Trend: Bearish
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