USD/CAD Price Analysis: Bears stay hopeful despite latest rebound towards 1.3500
- USD/CAD remains sidelined after breaking one-week-old ascending trend line the previous day.
- Bearish MACD signals add strength to the downside bias targeting 200-SMA.
- Bulls need successful break of 61.8% golden Fibonacci ratio to retake control.
USD/CAD struggles for clear directions, despite picking up bids to refreshi ntraday high around 1.3470 during Tuesday’s Asian session, following a downbeat start of the week.
Although holidays in the US and Canada restricted the Loonie pair’s previous moves, the quote’s sustained trading below the previous support line from the last Tuesday, now resistance near 1.3490, keeps the pair sellers hopeful.
Also adding strength to the downside bias are the bearish MACD signals and a clear U-turn from the 61.8% Fibonacci retracement level of the pair’s December 2022 to February 2023 downside, near 1.3540 at the latest.
That said, the USD/CAD bears may aim for the 200-Simple Moving Average (SMA), close to 1.3400 by the press time, as an immediate target during the quote’s fresh downside past the latest low of 1.3440. Following that, the monthly bottom surrounding 1.3260 will be in focus.
Alternatively, the aforementioned support-turned-resistance line and the 61.8% Fibonacci retracement level could challenge the short-term USD/CAD buyers around 1.3490 and 1.3540 respectively.
In a case where the Loonie pair remains firmer past 1.3540, January’s peak surrounding 1.3685 and multiple hurdles marked during late 2022 around 1.3700 will be in the focus of the pair buyers.
To sum up, USD/CAD remains on the bear’s radar despite the latest corrective bounce.
USD/CAD: Four-hour 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.
