- 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.
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
|Today last price||1.3645|
|Today Daily Change||0.0005|
|Today Daily Change %||0.04%|
|Today daily open||1.364|
|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|
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