USD/CAD technical analysis: Sellers dominate below 200-day EMA
|- USD/CAD extends south-run following heavy declines.
- A negative candle after the Doji, coupled with bearish MACD, favor sellers.
- Two-week-old resistance-line caps upside beyond the key EMA.
Following losses on the daily candle after a bearish Doji, the USD/CAD pair declines to intra-day low of 1.3218 during early Wednesday.
In addition to downward signaling candlestick formation, a sustained trading below the 200-day exponential moving average (EMA) and bearish signals from the 12-bar moving average convergence and divergence (MACD) also indicate pair’s further south-run.
In doing so, 50% Fibonacci retracement of July-September upside, at 1.3200, could be the first to lure bears before pushing them towards an upward sloping trend-line since July 19, at 1.3182 now.
Should there be additional weakness past-1.3182, prices can revisit September month low nearing 1.3130.
On the upside, 38.2% Fibonacci retracement and 200-day EMA together limit the pair’s immediate advances around 1.3243/47, a break of which could trigger rise towards a fortnight-long falling trend-line, at 1.3290.
Additionally, pair’s sustained advances beyond 1.3290 enable it to challenge the previous month high nearing 1.3310.
USD/CAD daily 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.