USD/CAD Price Analysis: Bears need validation from 1.3500 support confluence
- USD/CAD holds lower ground near intraday low, snaps two-day uptrend.
- Bearish MACD signals, downbeat RSI hints at further downside of the Loonie pair.
- Convergence of 100-HMA, support line of two-week-old ascending triangle restricts short-term declines of the USD/CAD pair.
USD/CAD drops 0.25% intraday during the first loss-making day in three heading into Thursday’s European session. In doing so, the Loonie pair drops to 1.3520 by the press time.
That said, the USD/CAD pair’s latest moves appear forming a fortnight-old ascending triangle formation. The same joins downbeat RSI (14) and bearish MACD signals to favor the bearish chart formation.
However, a clear downside break of 1.3500 becomes necessary as the 100-Hour Moving Average (HMA) joins the stated triangle’s lower line to increase the strength of the stated support confluence.
Following that, tops marked during late January and early February, respectively near 1.3520 and 1.3475, could probe the USD/CAD bears before directing them to the theoretical target surrounding 1.3200.
On the contrary, USD/CAD buyers may aim for the latest swing high surrounding 1.3570 before poking the stated triangle’s top line, close to 1.3585 by the press time.
In a case where the Loonie pair remains firmer past 1.3585, the bearish chart formation gets defied as the bulls brace for a late 2022 swing high surrounding 1.3700.
To sum up, USD/CAD slips off bull’s radar but the sellers await clear break of 1.3500 to retake control.
USD/CAD: Hourly chart
Trend: Limited 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.
