USD/CAD Price Analysis: Bears attack 1.3200 after reversing from immediate resistance line
- USD/CAD sellers await fresh clue to extend pullback from a seven-day-old falling trend line.
- Sustained break of 50-bar SMA challenges short-term sellers.
- 100-bar SMA, monthly resistance line offer strong upside barrier.
USD/CAD seesaws around 1.3220/15 during the initial Asian session on Tuesday. In doing so, the loonie pair marks another U-turn from a short-term resistance line stretched from August 14. However, the quote’s successful break of 50-bar SMA, the first since August 10, challenges the bears at the moment.
As a result, sellers will wait for a clear downside break of 1.3200 mark comprising the said SMA to retake controls. Following that, 1.3160 and the monthly bottom, also the lowest since late-January, near 1.3130, becomes the key.
If at all the USD/CAD prices fail to bounce off 1.3130, odds of witnessing 1.3000 on the charts can’t be ruled out.
Meanwhile, an upside clearance of the said resistance line, at 1.3230 now, can’t be a sure thing to recall the buyers as another descending trend line from August 03 and 100-bar SMA restrict the pair’s further rise past-1.3270.
USD/CAD four-hour chart
Trend: Sideways
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.
