USD/CAD Price Analysis: 50-DMA probes immediate downside above 1.3500

USD/CAD takes offers after breaking six-week-old ascending trend line support, now resistance.
The first bearish MACD signal in a month, RSI retreat suggests further downside.
50-DMA challenges bears targeting ascending support line from August.
Bulls need validation from 1.3700 to retake control.

Anil Panchal FXStreet

USD/CAD extends the previous day’s bearish move while breaking the short-term key support during early Tuesday. That said, the Loonie pair refreshes intraday low near 1.3545 by the press time.

Not only a downside break of the six-week-old ascending trend line but the biggest bearish MACD signal in a month also favor the USD/CAD sellers. On the same line could be the recently softer RSI (14), not oversold.

As a result, the pair bears are all set to conquer the 50-DMA support of 1.3537, which in turn could direct the south-run towards an upward-sloping support line from August 11, close to 1.3440 by the press time.

In a case where the USD/CAD bears keep the reins past 1.3440, a four-month-long ascending support line, close to 1.3390 at the latest, will act as the last defense of the bulls, a break of which could quickly drag the quote toward the previous monthly low surrounding 1.3225.

Meanwhile, the support-turned-resistance line from mid-November, around 1.3585, challenges the USD/CAD pair’s immediate recovery moves.

Following that, a three-week-long horizontal resistance area near the 1.3700 round figure will be crucial for the bulls, as successful trading beyond the stated hurdle won’t hesitate to cross November’s peak of 1.3808.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.355
Today Daily Change	-0.0054
Today Daily Change %	-0.40%
Today daily open	1.3604

Trends
Daily SMA20	1.3593
Daily SMA50	1.3541
Daily SMA100	1.3414
Daily SMA200	1.3101

Levels
Previous Daily High	1.3604
Previous Daily Low	1.3604
Previous Weekly High	1.3704
Previous Weekly Low	1.3563
Previous Monthly High	1.3808
Previous Monthly Low	1.3226
Daily Fibonacci 38.2%	1.3604
Daily Fibonacci 61.8%	1.3604
Daily Pivot Point S1	1.3604
Daily Pivot Point S2	1.3604
Daily Pivot Point S3	1.3604
Daily Pivot Point R1	1.3604
Daily Pivot Point R2	1.3604
Daily Pivot Point R3	1.3604

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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