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.

Anil Panchal FXStreet

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 price	1.3586
Today Daily Change	-0.0014
Today Daily Change %	-0.10%
Today daily open	1.36

Trends
Daily SMA20	1.3406
Daily SMA50	1.3571
Daily SMA100	1.33
Daily SMA200	1.3034

Levels
Previous Daily High	1.3605
Previous Daily Low	1.3385
Previous Weekly High	1.3646
Previous Weekly Low	1.3381
Previous Monthly High	1.3808
Previous Monthly Low	1.3226
Daily Fibonacci 38.2%	1.3521
Daily Fibonacci 61.8%	1.3469
Daily Pivot Point S1	1.3455
Daily Pivot Point S2	1.331
Daily Pivot Point S3	1.3235
Daily Pivot Point R1	1.3675
Daily Pivot Point R2	1.375
Daily Pivot Point R3	1.3895

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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