USD/CAD Price Analysis: Justifies Monday’s Gravestone Doji to drop towards 1.3100

USD/CAD takes offers to refresh intraday low after posting a bearish candlestick the previous day.
RSI inaction around the overbought territory also favor the pullback moves.
10-DMA, three-week-old support line lure sellers during further downside.
Bulls need to cross July’s top for conviction, 1.3200 guards immediate rebound.

Anil Panchal FXStreet

USD/CAD returns to the bear’s table, after an effort to leave the place the previous day, as it drops to 1.3130 during Tuesday’s Asian session. In doing so, the Loonie pair justifies the bearish candlestick formation, as well as a pause in the further bullish bias, during the inaction session.

With this, the quote is likely declining towards the 1.3100 threshold. It should, however, be noted that the 10-DMA near 1.3070 could restrict the short-term downside of the pair afterward.

In a case where the USD/CAD bears dominate past 1.3070, the convergence of an upward sloping support line from August 11 and the 61.8% Fibonacci retracement of the July-August fall, near 1.3030, may limit the further declines ahead of the 1.3000 psychological magnet.

Alternatively, recovery moves need to cross the previous day’s top surrounding 1.3175 to reject the bearish candlestick formation.

Even so, the yearly peak marked in July, around 1.3225 appears a tough nut to crack for the USD/CAD bulls to crack to keep the reins.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.3131
Today Daily Change	-0.0001
Today Daily Change %	-0.01%
Today daily open	1.3132

Trends
Daily SMA20	1.2957
Daily SMA50	1.2932
Daily SMA100	1.2867
Daily SMA200	1.2777

Levels
Previous Daily High	1.317
Previous Daily Low	1.3075
Previous Weekly High	1.3208
Previous Weekly Low	1.2972
Previous Monthly High	1.3141
Previous Monthly Low	1.2728
Daily Fibonacci 38.2%	1.3111
Daily Fibonacci 61.8%	1.3134
Daily Pivot Point S1	1.3082
Daily Pivot Point S2	1.3031
Daily Pivot Point S3	1.2987
Daily Pivot Point R1	1.3176
Daily Pivot Point R2	1.3221
Daily Pivot Point R3	1.3271

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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