USD/CAD Price Analysis: Further downside hinges on 200-EMA break


  • USD/CAD holds lower grounds near 2.5-month bottom, fades bounce off 200-EMA of late.
  • Clear downside break of short-term key support line favors sellers.
  • 50-EMA holds the key to bull’s conviction, 1.3700 appears a tough nut to crack for them.

USD/CAD remains pressured around the lowest levels since mid-November 2022 as it pokes the 200-day Exponential Moving Average (EMA) during early Thursday. In doing so, the Loonie pair prints mild losses during the three-day losing streak.

It’s worth noting that the quote’s sustained trading below the 50-EMA and a clear break of the eight-month-old ascending support line seems to keep the USD/CAD bears hopeful. Also favoring the sellers is the absence of an oversold RSI (14) line.

That said, the Loonie pair bears are very much capable of breaking the aforementioned key 200-EMA support surrounding 1.3260.

However, multiple levels marked since July 2022, surrounding 1.3230-20, portray strong support for the USD/CAD sellers to break if they wish to keep the reins.

Following that, a 61.8% Fibonacci retracement of the pair’s April-October 2022 run-up near the 1.3000 psychological magnet will be a crucial level to lure the USD/CAD bears.

On the contrary, a daily closing beyond the support-turned-resistance line from June 2022, close to 1.3320 by the press time, could activate the pair’s corrective bounce.

Even so, the USD/CAD bulls are likely to remain skeptical unless witnessing a daily closing beyond the 50-EMA level surrounding 1.3450.

In a case where the quote crosses the 1.3450 hurdle, the odds of its rally toward the multiple hurdles nearing 1.3700 can’t be ruled out.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price 1.3276
Today Daily Change -0.0012
Today Daily Change % -0.09%
Today daily open 1.3288
 
Trends
Daily SMA20 1.3396
Daily SMA50 1.3499
Daily SMA100 1.3531
Daily SMA200 1.3216
 
Levels
Previous Daily High 1.338
Previous Daily Low 1.3267
Previous Weekly High 1.3428
Previous Weekly Low 1.33
Previous Monthly High 1.3685
Previous Monthly Low 1.33
Daily Fibonacci 38.2% 1.331
Daily Fibonacci 61.8% 1.3337
Daily Pivot Point S1 1.3243
Daily Pivot Point S2 1.3198
Daily Pivot Point S3 1.3129
Daily Pivot Point R1 1.3357
Daily Pivot Point R2 1.3425
Daily Pivot Point R3 1.347

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

USD/JPY pops and drops on BoJ's expected hold

USD/JPY pops and drops on BoJ's expected hold

USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.  

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold consolidates near record high, bullish potential seems intact

Gold consolidates near record high, bullish potential seems intact

Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.

Gold News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures