USD/CAD Price Analysis: Retreats towards previous resistance line near 1.3550
|- USD/CAD fades upside momentum near one-week high, renews intraday low of late.
- Overbought RSI teases bears to challenge the resistance-turned-support.
- Bullish MACD signals, sustained trading beyond 100-SMA suggest further upside.
USD/CAD bulls take a breather around the weekly high as the quote declines to 1.3585 during Tuesday’s Asian session.
In doing so, the Loonie pair takes clues from the overbought RSI conditions to challenge the latest upward trajectory.
However, the previous resistance line from October 13, close to 1.3550, joins the bullish MACD signals to challenge the USD/CAD bears.
Even if the USD/CAD pair drops below 1.3550 resistance-turned-support, a three-week-old ascending trend line and the 100-SMA could question the quote’s further downside around 1.3400 and 1.3395 in that order.
In a case where the Loonie pair declines below 1.3395, a southward trajectory towards November’s low surrounding 1.3230 can’t be ruled out.
On the flip side, a downward-sloping resistance line from October 14, close to 1.3615 by the press time, restricts the short-term upside moves of the pair.
Following that, the previous weekly top near 1.3645 appears crucial for the USD/CAD bulls as a break which could allow them to retake control.
To sum up, USD/CAD bulls can stay hopeful, despite the latest pullback, unless the quote breaks 1.3395 level.
USD/CAD: Four-hour chart
Trend: Limited downside expected
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