USD/CAD Price Analysis: Further downside towards 100-DMA is on the cards

USD/CAD holds lower ground nearly weekly bottom, eyes further downside.
U-turn from 21-DMA, support-turned-resistance line from August favor sellers.
100-DMA, 61.8% Fibonacci retracement level lure the bears.

Anil Panchal FXStreet

USD/CAD prints a three-day downtrend as it refreshes the weekly low around 1.3330 heading into Thursday’s European session.

In doing so, the Loonie pair justifies the early-week pullback from the 21-DMA, as well as the previous support line from August. Also keeping the USD/CAD pair sellers hopeful are the bearish MACD signals.

With this, the Loonie pair sellers are on their way to the 100-DMA support surrounding 1.3265.

However, the tops marked during early September join the 61.8% Fibonacci retracement level of the pair’s August-October upside to highlight the 1.3200 threshold as a tough nut to crack for the USD/CAD bears.

In a case where the pair breaks the 1.3200 key support, the odds of its slump to the sub-1.3000 region can’t be ruled out.

Alternatively, recovery moves could initially aim for the 21-DMA hurdle surrounding 1.3455 before aiming for the support-turned-resistance line near 1.3490.

Even if the quote remains firmer past 1.3490, the 38.2% Fibonacci retracement level near 1.3500 could challenge the USD/CAD bulls before giving them control.

Overall, USD/CAD is likely to extend the latest weakness but the downside room appears limited.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.3336
Today Daily Change	-0.0017
Today Daily Change %	-0.13%
Today daily open	1.3353

Trends
Daily SMA20	1.3461
Daily SMA50	1.3564
Daily SMA100	1.3263
Daily SMA200	1.3005

Levels
Previous Daily High	1.344
Previous Daily Low	1.3348
Previous Weekly High	1.3409
Previous Weekly Low	1.3226
Previous Monthly High	1.3978
Previous Monthly Low	1.3496
Daily Fibonacci 38.2%	1.3384
Daily Fibonacci 61.8%	1.3405
Daily Pivot Point S1	1.3321
Daily Pivot Point S2	1.3289
Daily Pivot Point S3	1.3229
Daily Pivot Point R1	1.3413
Daily Pivot Point R2	1.3473
Daily Pivot Point R3	1.3505

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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