USD/CAD Price Analysis: Bears approach multi-month-old support near 1.3470
- USD/CAD seesaws around five-week low after four-day downtrend.
- Clear break of 50-DMA, downbeat oscillators keep sellers hopeful.
- Ascending support line from June 2022 appears the key challenge for Loonie bears.
- Buyers have a bumpy road on the way to retake control.
USD/CAD sellers flirt with 1.3520-25, after declining to the lowest levels since February 22, as markets turn dicey on Friday ahead of the key inflation data from the US. In doing so, the Loonie pair prints minor losses during the five-day losing streak.
Even so, the pair’s successful downside break of the 50-DMA joins bears MACD signals to keep the sellers hopeful. Adding strength to the bearish bias is the absence of the oversold RSI (14) line.
It’s worth noting, however, that an upward-sloping support line from early June 2022, close to 1.3475 by the press time, appears a tough nut to crack for the USD/CAD bears to watch during the further downside. Also highlighting the importance of the 1.3475 level is the RSI’s fall below the 50 level as it suggests the likely dip-buying around the key support line.
In a case where the Loonie pair breaks the 1.3475 support, the 200-DMA and an ascending trend line from mid-November 2022, respectively near 1.3375 and 1.3295, could challenge the bears afterward.
On the contrary, recovery moves need validation from the 50-DMA resistance of 1.3545 to convince short-term USD/CAD buyers.
However, the mid-month low around 1.3650-55 and December 2022 tops surrounding 1.3705 can challenge the Loonie pair’s further upside before highlighting the previous yearly top of 1.3977.
USD/CAD: Daily chart
Trend: Further downside expected
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.
