USD/CAD Price Analysis: Pullback remains elusive beyond 1.3570 support
- USD/CAD stays pressured around intraday low after reversing from multi-day high.
- RSI pullback favors latest retreat in Loonie prices toward two-week-old ascending support line.
- Bullish MACD signals, hawkish fundamentals challenge downside bias.
- Buyers have a bumpy road to witness on their return.
USD/CAD holds lower grounds near the intraday bottom surrounding 1.3590 during the mid-Asian session on Monday, extending the previous day’s U-turn from a seven-week high.
The Loonie pair’s latest weakness could be linked to the overbought conditions of the RSI (14), as well as a failure to provide a daily closing beyond the January 06 swing high. The pullback moves also took clues from the downside break of the two-week-old previous resistance line.
However, bullish MACD signals and an upward-sloping support line from February 14, close to 1.3570 by the press time, challenges the USD/CAD bears.
If the Loonie pair bears manage to conquer the stated support, the odds of witnessing a quick slump towards the 61.8% Fibonacci retracement level of the pair’s moves from the mid-December 2022 to early February, around 1.3535, can’t be ruled out.
Though, the late January swing high near 1.3520 and multiple tops marked during late January and early February, near 1.3480-70, could probe the USD/CAD sellers afterward.
Meanwhile, the upward-sloping resistance line from February 09, close to 1.3620 at the latest, guards the USD/CAD pair’s immediate upside.
Following that, horizontal lines comprising tops marked since early January and late December 2022, respectively near 1.3665 and 1.3685, becomes crucial for the bulls to watch for clear directions.
USD/CAD: Four-hour chart
Trend: Limited downside expected
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.
