USD/CAD Price Analysis: Gravestone Doji, overbought RSI highlights 1.3440 support confluence


  • USD/CAD retreats from the highest levels in a fortnight, snaps two-day uptrend.
  • Bearish candlestick formation, overbought RSI (14) signals pullback.
  • Convergence of two-day-old support line, previous resistance from November 10 challenge bears.
  • Bulls need validation from 200-DMA to suggest further upside.

USD/CAD prints mild losses around 1.3490 as it probes the two-day uptrend at the highest levels in a fortnight during early Tuesday.

In doing so, the Loonie pair justifies the bearish candlestick formation, namely the Gravestone Doji, on the four-hour play. Also supporting the pullback move is the RSI (14) line that stays near the overbought region.

As a result, the quote’s pullback towards the 1.3440 support confluence, encompassing an ascending trend line from Friday and the resistance-turned-support from November 10, appears imminent.

However, the 1.3400 threshold and a two-week-old upward-sloping trend line near 1.3340 could challenge the USD/CAD bears afterward.

In the case where the pair remains bearish past 1.3340, the odds of witnessing a fresh monthly low, currently around 1.3225, can’t be ruled out.

Meanwhile, the USD/CAD pair’s upside momentum needs a successful break above the 1.3500 round figure to defy the bearish candlestick formation. Even so, the 200-SMA level surrounding 1.3530 could challenge the pair buyers.

Should the quote manage to remain firmer beyond the 200-SMA, a run-up toward the monthly high near 1.3810 could gain more acceptance.

USD/CAD: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 1.3488
Today Daily Change -0.0015
Today Daily Change % -0.11%
Today daily open 1.3503
 
Trends
Daily SMA20 1.3432
Daily SMA50 1.3574
Daily SMA100 1.3276
Daily SMA200 1.3015
 
Levels
Previous Daily High 1.3505
Previous Daily Low 1.3381
Previous Weekly High 1.3495
Previous Weekly Low 1.3316
Previous Monthly High 1.3978
Previous Monthly Low 1.3496
Daily Fibonacci 38.2% 1.3458
Daily Fibonacci 61.8% 1.3428
Daily Pivot Point S1 1.3421
Daily Pivot Point S2 1.334
Daily Pivot Point S3 1.3298
Daily Pivot Point R1 1.3545
Daily Pivot Point R2 1.3586
Daily Pivot Point R3 1.3668

 

 

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