USD/CAD Price Analysis: Off multi-month-old support line but upside remains capped below 1.3380

USD/CAD portrays corrective bounce from seven-month-old ascending support line.
Downbeat oscillators, 38.2% Fibonacci retracement and previous support line guards recovery moves.
100-DMA holds the key to buyer’s conviction while break of 1.3300 could aim for 200-DMA.

Anil Panchal FXStreet

USD/CAD picks up bids to pare recent losses around the lowest levels in 11 weeks, mildly bid near 1.3340 heading into Friday’s European session. In doing so, the Loonie pair bounces off an upward-sloping support line from early June 2022.

However, a convergence of the previous support line from mid-November and the 38.2% Fibonacci retracement level of the pair’s April-October upside, near 1.3380 by the press time, restricts USD/CAD pair’s recovery.

Other than the aforementioned key resistance confluence near 1.3380, the bearish MACD signals and the downward-sloping RSI (14) also challenge the Loonie pair’s corrective bounce.

Even if the USD/CAD buyers manage to cross the 1.3380 hurdle, the 100-DMA surrounding 1.3525 will be crucial to stop the upside momentum, a break of which won’t hesitate to challenge the monthly high of near 1.3685.

On the flip side, a daily closing below the stated multi-month-old support line, close to 1.3300 at the latest, could quickly fetch the USD/CAD pair towards the 200-DMA support of around 1.3210.

In a case where the USD/CAD remains bearish past 1.3210, the 1.3200 round figure may act as the last defense of buyers before relinquishing control.

USD/CAD: Daily chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	1.3339
Today Daily Change	0.0015
Today Daily Change %	0.11%
Today daily open	1.3324

Trends
Daily SMA20	1.3445
Daily SMA50	1.3504
Daily SMA100	1.3522
Daily SMA200	1.3205

Levels
Previous Daily High	1.3408
Previous Daily Low	1.3303
Previous Weekly High	1.3521
Previous Weekly Low	1.3351
Previous Monthly High	1.3705
Previous Monthly Low	1.3385
Daily Fibonacci 38.2%	1.3343
Daily Fibonacci 61.8%	1.3368
Daily Pivot Point S1	1.3282
Daily Pivot Point S2	1.324
Daily Pivot Point S3	1.3178
Daily Pivot Point R1	1.3387
Daily Pivot Point R2	1.345
Daily Pivot Point R3	1.3492

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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