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USD/CAD Price Analysis: Retreats towards previous resistance line near 1.3550

  • USD/CAD fades upside momentum near one-week high, renews intraday low of late.
  • Overbought RSI teases bears to challenge the resistance-turned-support.
  • Bullish MACD signals, sustained trading beyond 100-SMA suggest further upside.

USD/CAD bulls take a breather around the weekly high as the quote declines to 1.3585 during Tuesday’s Asian session.

In doing so, the Loonie pair takes clues from the overbought RSI conditions to challenge the latest upward trajectory.

However, the previous resistance line from October 13, close to 1.3550, joins the bullish MACD signals to challenge the USD/CAD bears.

Even if the USD/CAD pair drops below 1.3550 resistance-turned-support, a three-week-old ascending trend line and the 100-SMA could question the quote’s further downside around 1.3400 and 1.3395 in that order.

In a case where the Loonie pair declines below 1.3395, a southward trajectory towards November’s low surrounding 1.3230 can’t be ruled out.

On the flip side, a downward-sloping resistance line from October 14, close to 1.3615 by the press time, restricts the short-term upside moves of the pair.

Following that, the previous weekly top near 1.3645 appears crucial for the USD/CAD bulls as a break which could allow them to retake control.

To sum up, USD/CAD bulls can stay hopeful, despite the latest pullback, unless the quote breaks 1.3395 level.

USD/CAD: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price1.3586
Today Daily Change-0.0014
Today Daily Change %-0.10%
Today daily open1.36
 
Trends
Daily SMA201.3406
Daily SMA501.3571
Daily SMA1001.33
Daily SMA2001.3034
 
Levels
Previous Daily High1.3605
Previous Daily Low1.3385
Previous Weekly High1.3646
Previous Weekly Low1.3381
Previous Monthly High1.3808
Previous Monthly Low1.3226
Daily Fibonacci 38.2%1.3521
Daily Fibonacci 61.8%1.3469
Daily Pivot Point S11.3455
Daily Pivot Point S21.331
Daily Pivot Point S31.3235
Daily Pivot Point R11.3675
Daily Pivot Point R21.375
Daily Pivot Point R31.3895

Author

Anil Panchal

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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