USD/CAD Price Analysis: Buyers struggle to retake controls
- USD/CAD extends bounce off 1.3037 to again attack 100-HMA immediate resistance.
- Sustained trading beyond one-week-old falling trend line, receding bearish power of the MACD suggest further pullback.
- Bears will wait for fresh monthly low before taking entries.
USD/CAD traders jostle around 1.3050 as markets in Tokyo open for Thursday’s trading. The quote marks multiple failures to cross 100-HMA. However, a successful break of short-term resistance line, now support, joins the receding bearishness of MACD histogram to portray the recent recovery from 1.3037.
While a clear break of 100-HMA, at 1.3064 now, will help the pair to challenge the weekly top near 1.3095, any further upside will swindle around 200-HMA level around 1.3120.
Other than the key HMA, 61.8% Fibonacci retracement of the pair’s August 25 to September 01 fall, at 1.3145, also acts as the strong filter to the north.
Alternatively, the previous resistance, now support line, close to 1.3010 and the monthly bottom surrounding 1.2995 restrict the pair’s near-term downside.
It should, however, be noted that the quote’s extended weakness past-1.2995 makes it vulnerable to slip beneath the yearly bottom of 1.2951.
USD/CAD hourly chart
Trend: Pullback 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.
