USD/CAD Price Analysis: On the back foot below 50-HMA, weekly resistance line
|- USD/CAD remains pressured near the lowest since January 2020.
- Failures to cross a short-term resistance confluence favor sellers.
- 200-HMA adds to the upside barriers for the bulls’ entry.
USD/CAD drops to 1.3085, down 0.10% on a day, during the pre-Tokyo open trading on Monday. In doing so, the loonie pair stays depressed for the fifth day in a row while taking rounds to the seven month low.
On Friday, the pair bounced off 1.3047, the multi-week low, but couldn’t cross a join of 50-HMA and a descending trend line from August 25.
As a result, sellers are currently targeting Friday’s low near 1.3050 before attacking the late-January bottom surrounding 1.3035/30 and the 1.3000 threshold. However, the pair’s further weakness might not refrain from attacking the yearly low surrounding 1.2950.
On the contrary, an upside break of 1.3115/20 resistance confluence will trigger the quote’s fresh rise towards a 200-HMA level of 1.3170.
Though, 1.3200 round-figures and multiple highs marked during August 20-25 can challenge the bulls beyond 200-HMA.
USD/CAD hourly chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.