USD/CAD Price Analysis: Impending bear cross keeps sellers hopeful above 1.3400
- USD/CAD struggles for clear directions after two-day downtrend.
- 100-HMA approaches 50-HMA from below, suggesting short-term downside.
- Four-day-old resistance line adds to the upside filters.
- Bears need validation from a two-week-old ascending support line.
USD/CAD treads water around 1.3430 during the early Friday in Asia, following a two-day losing streak. The Loonie pair’s latest inaction could be linked to the trader’s cautious mood ahead of the key employment data from the US and Canada.
Even so, a looming bear cross between the 100-HMA and 50-HMA keeps the USD/CAD sellers hopeful. It’s worth noting that the 100-HMA has to successfully pierce the 50-HMA to confirm the bearish bias.
That said, the bullish MACD signals challenge the quote’s downside after the latest fall, which in turn suggests a corrective bounce toward the HMA convergence area near 1.3475.
Also acting as an upside filter is a downward-sloping resistance line from Tuesday, close to 1.3490, as well as the 1.3500 threshold.
Hence, the USD/CAD pair remains on the bear’s radar unless crossing the 1.3500 mark, a break of which could direct the buyers toward the weekly top surrounding 1.3645.
On the flip side, an ascending trend line from November 16, close to 1.3380 at the latest, restricts the short-term downside of the Loonie pair.
Following that, the 1.3315 level may probe the USD/CAD bears before directing them to the monthly low near 1.3225.
USD/CAD: Hourly chart
Trend: Further downside expected
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.
