USD/CAD Price Analysis: Bounces off 1.3520 support confluence

USD/CAD reverses from intraday low, probes the previous daily loss.
Convergence of 200-SMA, three-day-old ascending trend line restricts immediate downside.
Bulls remain off the table unless crossing the previous support line from November.
Downbeat RSI line, sustained trading below key trend line, SMA favor sellers.

Anil Panchal FXStreet

USD/CAD takes a U-turn from the intraday low while picking up bids to 1.3560 amid the holiday-thinned trading session on Monday. In doing so, the Loonie pair bounces off the convergence of the 200-SMA and an upward-sloping support line from the last Wednesday.

That said, the quote’s failure to stay beyond the support-turned-resistance line from November 15, following the previous week’s bounce off the 200-SMA, joins sustained trading below the 50-SMA to keep USD/CAD sellers hopeful.

As a result, the Loonie pair is likely to conquer the 1.3520 support level and aim for the 1.3500 round figure.

However, the double bottom around 1.3485, marked in the last week, will be crucial for the USD/CAD bears to keep the reins.

Following that, the previous monthly low of around 1.3385 could lure the pair sellers ahead of November’s bottom surrounding 1.3225.

Meanwhile, the pair’s recovery moves could aim for the weekly resistance line, around 1.3570, before poking the 50-SMA level surrounding 1.3580.

Though, successful trading beyond the 1.5-month-old support-turned-resistance line, close to 1.3610 at the latest, becomes necessary for the USD/CAD bulls to retake control.

Overall, USD/CAD is likely to remain on the bear’s radar unless even as the downside room is limited.

USD/CAD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.356
Today Daily Change	0.0020
Today Daily Change %	0.15%
Today daily open	1.354

Trends
Daily SMA20	1.3607
Daily SMA50	1.3527
Daily SMA100	1.3444
Daily SMA200	1.3122

Levels
Previous Daily High	1.3582
Previous Daily Low	1.3514
Previous Weekly High	1.3612
Previous Weekly Low	1.3484
Previous Monthly High	1.3705
Previous Monthly Low	1.3385
Daily Fibonacci 38.2%	1.354
Daily Fibonacci 61.8%	1.3556
Daily Pivot Point S1	1.3508
Daily Pivot Point S2	1.3477
Daily Pivot Point S3	1.344
Daily Pivot Point R1	1.3576
Daily Pivot Point R2	1.3613
Daily Pivot Point R3	1.3644

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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