USD/CAD Price Analysis: Drops for the fifth week, focus on 1.3175/70 support confluence
- USD/CAD eases from 1.3313 to defy pullback from 1.3271.
- Bearish MACD directs the quote to 200-week SMA, an ascending trend line from February 2018.
- Bulls will have to cross a five-month-old resistance line to regain control.
USD/CAD recedes to 1.3300, following its drop to 1.3293, during the early Wednesday morning in Asia. The loonie pair drops for the fifth consecutive week amid bearish MACD. The same suggests further downside momentum towards a confluence of 200-week SMA and a multi-month-old support line.
Ahead of the 1.3175/70 key support, the previous week’s bottom, also the lowest since February 2020, can also challenge the sellers near 1.3230.
It should, however, be noted that the pair’s declines past-1.3170 will make it vulnerable to revisit the yearly bottom surrounding 1.2950 with the 1.3000 threshold likely acting as an intermediate halt.
Alternatively, any pullback will be considered ephemeral unless crossing a downward sloping trend line from March high, at 1.3430 now.
In a case where the bulls manage to conquer 1.3430 on a weekly closing basis, the late-June high surrounding 1.3715 will regain market attention.
USD/CAD weekly chart
Trend: Bearish
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.
