USD/CAD technical analysis: Struggles near 23.6% Fibo, 1.3224/32 becomes key resistance
|- USD/CAD lacks momentum around 23.6% Fibonacci retracement.
- 38.2% Fibonacci retracement, 100/200-day EMA restrict immediate upside.
- Multiple stops before 1.3000 limit pair’s short-term declines.
Following its U-turn from 1.3200, USD/CAD clings to 23.6% Fibonacci retracement of May-July downside while taking rounds to 1.3140 during early Monday
The lack of momentum could also be witnessed by nearly a flat curve of the 14-day Relative Strength Index (RSI).
While a downside break below July-end low of 1.3105 could reignite possibilities of pair’s another south-run towards 1.3000 mark, with 1.3042 and 1.3015 being intermediate halts, buyers need to clear 1.3224/32 area comprising 38.2% Fibonacci retracement and 100/200-day Exponential Moving Average (EMA) to extend recovery.
Should prices rally beyond 1.3232 on a daily closing basis, 50% and 61.8% Fibonacci retracement levels of 1.3290 and 1.3355 could be on bull’s watch-list.
On the contrary, the pair’s decline below 1.3000 could target mid-October 2018 low around 1.2915.
USD/CAD daily chart
Trend: sideways
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.