USD/CAD Price Analysis: Refreshes 12-day low, eyes near three-month-old support line
|- USD/CAD wavers inside less than 10-pip trading range near the 1.3000 threshold.
- RSI has a gap before reaching the oversold territory, suggesting further weakness.
- 21-day SMA offers immediate resistance ahead of mid-month high.
USD/CAD drops to 1.2997, down 0.05% intraday, during Wednesday’s Asian session. Following its drop to November 09 low before a few hours, the quote has been wobbling between 1.2994 and 1.2999. Even so, a sustained trading below 21-day SMA and an absence of oversold RSI conditions favor the bears.
As a result, a descending trend line from September 01, at 1.2911 now, gains the USD/CAD bears’ attention off-late. Though, the monthly low near 1.2930 can offer an intermediate halt during the downside.
In a case where the USD/CAD sellers chose to ignore RSI conditions during their reign past-1.2911, the October 2018 low near 1.2780 will gain the market’s attention.
Alternatively, 1.3030 and 21-day SMA around 1.3120 offer immediate resistance during the USD/CAD bounce.
However, November 13 high close to 1.3172 and the 1.3200 round-figure could challenge the recovery moves ahead of directing the USD/CAD buyers toward the monthly top around 1.3370.
USD/CAD daily chart
Trend: Further weakness expected
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