USD/CAD Price Analysis: Extends pullback from short-term key resistance to 1.3600

USD/CAD holds lower ground during two-day retreat from monthly high.
Bearish MACD signals add strength to pullback moves targeting previous resistance line.
Loonie pair’s recovery needs validation from April’s peak.

Anil Panchal FXStreet

USD/CAD remains mildly offered near 1.3600 as it defends the previous day’s U-turn from a one-month high during Monday’s sluggish Asian session, especially amid the holidays in the US.

That said, the Loonie pair’s latest weakness justifies its inability to cross a two-month-old descending resistance line, around 1.3650 by the press time. Adding strength to the downside bias are the bearish MACD signals.

With this, the USD/CAD sellers are all set to prod the previous resistance line stretched from early March, close to 1.3550. However, a convergence of the 50-SMA and a three-week-old support line, near 1.3535 at the latest, could challenge the Loonie pair’s further downside.

Even if the quote breaks the 1.3535 support confluence, the 200-SMA level of around 1.3500 can act as the last defense of the USD/CAD buyers before giving control to the Loonie pair bears.

On the contrary, the aforementioned two-month-old resistance line, close to 1.3650, restricts the immediate upside of the pair ahead of the previous monthly high of around 1.3665-70.

Following that, the late March swing high near 1.3700 may act as an additional check for the USD/CAD buyers before targeting the yearly high marked in March around 1.3860.

Overall, USD/CAD is likely to witness further downside but the room towards the south is limited.

USD/CAD: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.3603
Today Daily Change	-0.0014
Today Daily Change %	-0.10%
Today daily open	1.3617

Trends
Daily SMA20	1.3507
Daily SMA50	1.3525
Daily SMA100	1.3511
Daily SMA200	1.3493

Levels
Previous Daily High	1.3655
Previous Daily Low	1.3601
Previous Weekly High	1.3655
Previous Weekly Low	1.3485
Previous Monthly High	1.3668
Previous Monthly Low	1.3301
Daily Fibonacci 38.2%	1.3622
Daily Fibonacci 61.8%	1.3634
Daily Pivot Point S1	1.3594
Daily Pivot Point S2	1.357
Daily Pivot Point S3	1.354
Daily Pivot Point R1	1.3648
Daily Pivot Point R2	1.3678
Daily Pivot Point R3	1.3702

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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