USD/CAD Price Analysis: Sellers can ignore pullback from 1.3100
|- USD/CAD bounces off the fresh low since late-January 2020.
- A two-day-old falling trend channel, 200-bar SMA question the recovery moves.
- Weekly support line adds to the downside filter ahead of 1.3050/45 area.
USD/CAD picks up bids near 1.3130 during the early Asian session on Friday. The loonie pair refreshed seven-month low the previous day before taking a U-turn from 1.3101.
Even so, a short-term descending channel and the pair’s sustained trading below the key 200-bar SMA keeps the sellers hopeful.
As a result, any upside below 1.3175 level, comprising 200-bar SMA, becomes ephemeral to be considered. Though, the pair’s break of the channel’s resistance, at 1.3150 now, can offer mild push to the north.
If at all the pair manages to cross 1.3175, multiple resistances around 1.3240/45 have been restricting the rise since August 20.
Meanwhile, a downward sloping trend line from August 24, at 1.3100 can offer immediate support to the pair ahead of the channel’s support near 1.3090.
Given the bears’ power-play below 1.3090, the 1.3050/45 region including lows marked during late-January 2020 will be the key.
USD/CAD 30-minute chart
Trend: Bearish
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