USD/CAD Price Analysis: Drops to near 3-month lows, inching closer to mid-1.3600s
|- USD/CAD meets with some fresh supply on Monday and breaks below 100-day SMA.
- The set-up supports prospects for an eventual breakthrough a two-month-old channel.
- The pair now seems vulnerable to weaken below 1.3600 mark and test 1.3530 support.
The USD/CAD pair came under some fresh selling on the first day of a new trading week and dropped to near three-month lows, breaking below 100-day SMA support near the 1.3725 region.
The intraday selling pressure dragged the pair further below the 1.3700 mark, with bearish challenging support marked by the lower end of over two-month-old descending trend-channel.
Given last week's sustained breakthrough important horizontal support near the 1.3850-60 region, the near-term bias remains firmly tilted in favour of bearish traders.
A subsequent acceptance below the 50% Fibonacci level of the 1.2952-1.4668 move up suggests that the recent bearish pressure surrounding the major might still be far from over.
The negative outlook is further reinforced by bearish technical indicators on hourly/daily charts, which support prospects for an eventual breakthrough the channel support.
The pair now seems all set to accelerate the fall further towards the 61.8% Fibo. level support near the 1.3600 handle en-route the next major support near the 1.3530 region.
On the flip side, any attempted recovery might now confront some fresh supply near the 1.3800 mark (50% Fibo. level) and remain capped near the 1.3850-60 support breakpoint.
USD/CAD daily chart
Technical levels to watch
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