USD/CAD Price Analysis: On the way to monthly support near 1.3570

USD/CAD remains pressured around fortnight low, keeps Friday’s break of 21-DMA.
The first daily close below 21-DMA in six weeks, bearish MACD signals favor sellers.
One-week-old descending trend line adds to the upside filters.

Anil Panchal FXStreet

USD/CAD fades the bounce off a two-week low, marked earlier in the day, as it retreats to 1.3645 during Monday’s Asian session. In doing so, the Loonie pair keeps Friday’s downside break of the 21-DMA, the first in over a month.

In addition to the 21-DMA breakdown, the bearish MACD signals and a downward sloping RSI, not oversold, also direct the USD/CAD sellers towards an ascending support line from late September, around 1.3570 by the press time. However, the 1.3600 threshold may act as an immediate rest for the bears.

In a case where the quote breaks the aforementioned support, the monthly low and the 38.2% Fibonacci retracement of the pair’s August-October upside, near 1.3500, will be crucial to watch for the further downside.

Should the USD/CAD bears dominate past 1.3500, an upward-sloping support line from August, close to 1.3320 by the press time.

Alternatively, a daily closing beyond the 21-DMA level of 1.3716 appears necessary for the pair buyer’s return.

Even so, a descending resistance line from October 13 and the previous monthly high, respectively around 1.3815 and 1.3840, will be tough challenges for the USD/CAD bulls.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.3645
Today Daily Change	0.0005
Today Daily Change %	0.04%
Today daily open	1.364

Trends
Daily SMA20	1.3724
Daily SMA50	1.3361
Daily SMA100	1.3122
Daily SMA200	1.2911

Levels
Previous Daily High	1.3855
Previous Daily Low	1.363
Previous Weekly High	1.3885
Previous Weekly Low	1.363
Previous Monthly High	1.3838
Previous Monthly Low	1.2954
Daily Fibonacci 38.2%	1.3716
Daily Fibonacci 61.8%	1.3769
Daily Pivot Point S1	1.3562
Daily Pivot Point S2	1.3483
Daily Pivot Point S3	1.3337
Daily Pivot Point R1	1.3787
Daily Pivot Point R2	1.3933
Daily Pivot Point R3	1.4012

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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