USD/CAD Price Analysis: Key HMAs challenge bulls above 1.3700

USD/CAD holds lower grounds after declining below 50-HMA, 100-HMA.
Downbeat oscillators direct sellers towards a two-week-old ascending support line.
Bulls may aim for weekly resistance line on crossing 1.3740 hurdle.

Anil Panchal FXStreet

USD/CAD struggles for clear directions around 1.3720-25 after welcoming the bears the previous day. In doing so, the Loonie pair stays defensive while keeping Thursday’s downside break of the 100 and 50 Hourly Moving Averages (HMAs).

Not only the HMA breakdown but the bearish MACD signals and descending RSI (14), not oversold, also keeps the Loonie sellers hopeful of witnessing the further south-run.

That said, the 1.3700 threshold appears to be the immediate support for the USD/CAD sellers to watch ahead of a two-week-old ascending trend line, near 1.3690-85 at the latest.

In a case where the Loonie pair breaks 1.3685, the weekly low surrounding 1.3650 will gain the market’s attention before highlighting the monthly bottom of around 1.3555.

On the flip side, the 100-HMA and the 50-HMA restrict immediate USD/CAD recovery near 1.3730 and 1.3740 in that order.

However, a descending trend line stretched from the last Friday, near 1.3795, as well as the 1.3800 threshold, could restrict the pair’s upside past 1.3740.

Should the quote rally past 1.3740, the odds of witnessing a fresh Year-To-Date (YTD) high, currently around 1.3860, can’t be ruled out.

Overall, USD/CAD remains sidelined between the fortnight-old and weekly trend lines. However, the latest downside break of the HMAs and downbeat oscillators favor the intraday sellers.

USD/CAD: Hourly chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.3723
Today Daily Change	0.0001
Today Daily Change %	0.01%
Today daily open	1.3722

Trends
Daily SMA20	1.3645
Daily SMA50	1.3492
Daily SMA100	1.3508
Daily SMA200	1.3335

Levels
Previous Daily High	1.3788
Previous Daily Low	1.3714
Previous Weekly High	1.3862
Previous Weekly Low	1.3582
Previous Monthly High	1.3666
Previous Monthly Low	1.3262
Daily Fibonacci 38.2%	1.3742
Daily Fibonacci 61.8%	1.376
Daily Pivot Point S1	1.3694
Daily Pivot Point S2	1.3667
Daily Pivot Point S3	1.362
Daily Pivot Point R1	1.3769
Daily Pivot Point R2	1.3815
Daily Pivot Point R3	1.3843

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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