USD/CAD Price Analysis: Recovery remains elusive below 1.3745
- USD/CAD rebound from one-week low, mildly bid of late.
- Convergence of three-month-old support line, 21-DMA puts floor under Loonie prices.
- Bearish MACD signals, descending resistance line from March 10 prod bulls.
USD/CAD renews its intraday high around 1.3680 as it pares the biggest daily loss in more than a week while bouncing off a multi-day-old support line, as well as from the 21-DMA, during early Tuesday.
It should, however, be noted that the recovery moves fail to gain support from the MACD, as the oscillator keeps flashing bearish signals. Also testing the Loonie pair buyers is a seven-day-old descending resistance line near 1.3745.
Even if the quote rises past the 1.3745 hurdle, multiple resistances between 1.3750-60 can challenge the USD/CAD buyers before directing them to the monthly high surrounding 1.3865, a break of which opens the door for the pair’s run-up towards the previous yearly top of 1.3977.
On the contrary, the 21-DMA and a three-month-old support line, respectively near 1.3670 and 1.3660, restrict short-term USD/CAD downside.
In a case where the Loonie pair provides a daily closing below 1.3660, a slump toward the monthly low of 1.3555 can’t be ruled out. Though, the 1.3600 round figure may act as an intermediate halt during the anticipated fall.
Should the USD/CAD bears keep the reins past 1.3555, the late January swing high around 1.3520 appears the last defense of the pair buyers.
Overall, USD/CAD remains bearish despite the latest recovery moves.
USD/CAD: Daily chart
Trend: Limited recovery 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.
