USD/CAD Price Analysis: Loonie bulls attack multi-day-old resistance of 1.3610 ahead of key catalysts

USD/CAD picks up bids to reverse the week-start retreat, poking downward-sloping resistance line from late April at the latest.
Sustained trading beyond the key Fibonacci ratio, 21-DMA favor Loonie pair buyers.
Nearly overbought RSI line suggests pullback; bulls should remain cautious below 1.3670.

Anil Panchal FXStreet

USD/CAD pierces the 1.3600 threshold as buyers attack a downward-sloping resistance line from late April amid the very early Tuesday morning in Europe.

Also read: USD/CAD trades sideways below the 1.3600 mark, BoC rate decision, US Services PMI eyed

The Loonie pair justified overbought conditions of the RSI (14) line to retreat the previous day. Even so, the quote stayed beyond the 61.8% Fibonacci retracement of the March–July downside, not to mention its defense of the recovery from the 21-DMA.

Also keeping the USD/CAD buyers hopeful is the early-August run-up beyond the six-month-old previous resistance line.

Hence, the quote stays on the bull’s radar but the further upside appears limited, which in turn highlights the immediate resistance line surrounding 1.3610.

Following that, the previous monthly high of 1.3640 will precede the tops marked in May and April, respectively near 1.3655 and 1.3670, to challenge the USD/CAD buyers.

In a case where the Loonie pair buyers keep the reins past 1.3670, the odds of witnessing its gradual rise toward March’s peak of 1.3861 can’t be ruled out.

On the contrary, a daily closing beneath the 61.8% Fibonacci ratio and the 21-DMA, respectively near 1.3570 and 1.3530, becomes necessary to recall the USD/CAD bears.

In those conditions, the 50% Fibonacci retracement level of .3480 could lure the USD/CAD sellers before challenging them with the 1.3400 support confluence comprising the 100-DMA and previous resistance line stretched from early March.

USD/CAD: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.3607
Today Daily Change	0.0016
Today Daily Change %	0.12%
Today daily open	1.3591

Trends
Daily SMA20	1.3525
Daily SMA50	1.3355
Daily SMA100	1.3398
Daily SMA200	1.3464

Levels
Previous Daily High	1.3605
Previous Daily Low	1.3576
Previous Weekly High	1.3637
Previous Weekly Low	1.3489
Previous Monthly High	1.364
Previous Monthly Low	1.3184
Daily Fibonacci 38.2%	1.3587
Daily Fibonacci 61.8%	1.3593
Daily Pivot Point S1	1.3576
Daily Pivot Point S2	1.3561
Daily Pivot Point S3	1.3547
Daily Pivot Point R1	1.3605
Daily Pivot Point R2	1.362
Daily Pivot Point R3	1.3634

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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