USD/CAD Price Analysis: Snaps three-day downtrend to keep 1.3000
|- USD/CAD bounces off a horizontal area comprising multiple lows marked since September.
- A confluence of 10-day SMA, monthly resistance line guards immediate upside.
- Break of September low becomes necessary for the fresh downside.
USD/CAD consolidates the weekly losses while regaining the 1.3000 threshold early on Thursday. The pair dropped to the lowest in two weeks the previous day, before bouncing off 1.2986.
As a result, the region between 1.2985 and 1.3000, including lows marked since September 01, except for the current month’s downtick, becomes the key support to watch for USD/CAD traders.
Considering the pair’s latest pullback moves, November 17 low near 1.3035 appears as an immediate target for the USD/CAD buyers. However, a joint of short-term SMA and a descending trend line from November 02, near 1.3060/65 becomes the key resistance to watch afterward.
Meanwhile, bearish MACD and the pair’s trading below important resistance confluence keep the USD/CAD sellers hopeful.
Hence, a downside break of 1.2985 is what they’re targeting before looking at the monthly bottom around 1.2930.
USD/CAD daily chart
Trend: Pullback expected
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