USD/CAD Price Analysis: Justifies Dragonfly Doji candlestick to bounce off key support line towards 1.3400

USD/CAD grinds higher after recovering from six-month-old ascending support line.
Bullish candlestick formation, nearly oversold RSI (14) add strength to recovery moves.
200-DMA prods Loonie pair buyers; bears need validation from 1.3300 to keep the reins.

Anil Panchal FXStreet

USD/CAD seesaws around 1.3370-80 as it struggles to defend the previous day’s corrective bounce off the short-term key support line during early Tuesday. In doing so, the Loonie pair justifies the bullish candlestick, marked on Monday, as well as the nearly oversold RSI (14) conditions.

Even if the USD/CAD pair’s latest inaction, the Loonie pair remains off the bear’s radar, especially after posting the Dragonfly bullish Doji candlestick the previous day while recovering from an upward-sloping support line from November 2022.

As a result, the quote’s retreat remains elusive unless breaking the aforementioned support line, currently around 1.3315. Also acting as a downside filter is the 1.3300 round figure.

It’s worth noting that February’s bottom is around 1.3265 and the late 2022 trough surrounding 1.3240 can also challenge the USD/CAD bears before giving them control.

On the contrary, the Loonie pair’s latest rebound can aim for the 200-DMA hurdle of around 1.3450. However, the buyers will need validation from the 100-DMA level surrounding 1.3520 to aim for the previous monthly high of around 1.3670.

In a case where the USD/CAD remains firmer past 1.3670, the odds of witnessing a rally toward the yearly high of near 1.3860 can’t be ruled out.

USD/CAD: Daily chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	1.3374
Today Daily Change	-0.0001
Today Daily Change %	-0.01%
Today daily open	1.3375

Trends
Daily SMA20	1.3495
Daily SMA50	1.3581
Daily SMA100	1.3521
Daily SMA200	1.3449

Levels
Previous Daily High	1.3388
Previous Daily Low	1.3315
Previous Weekly High	1.3639
Previous Weekly Low	1.3371
Previous Monthly High	1.3668
Previous Monthly Low	1.3301
Daily Fibonacci 38.2%	1.336
Daily Fibonacci 61.8%	1.3343
Daily Pivot Point S1	1.3331
Daily Pivot Point S2	1.3286
Daily Pivot Point S3	1.3258
Daily Pivot Point R1	1.3404
Daily Pivot Point R2	1.3432
Daily Pivot Point R3	1.3476

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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