USD/CAD Price Analysis: Sellers attack 1.3660 support confluence to open 100-pip fall

USD/CAD holds lower ground near intraday bottom during the first loss-making day in three.
Convergence of 21-EMA, horizontal resistance-turned-support from early January challenges sellers.
Bearish MACD signals, downbeat RSI (14) suggests further downside of the Loonie pair towards monthly low.

Anil Panchal FXStreet

USD/CAD reverses from a two-week-old resistance line to print the first daily loss in three around 1.3675 heading into Thursday’s European session. In doing so, the Loonie pair pokes a key support confluence comprising the 21-day Exponential Moving Average (EMA) and a horizontal line stretched from early January, the previous resistance.

Not only the failure to cross a short-term descending resistance line but bearish MACD signals and downward-sloping RSI (14) line, not oversold, also favors the Loonie pair sellers as they poke the 1.3660-65 support confluence.

Considering the aforementioned catalysts, the USD/CAD bears appear all-set to witness a near 100 pips of south-run on breaking the 1.3660 level, which in turn highlights the monthly low of 1.3555 that comprises the 50% Fibonacci retracement of the pair’s February-March upside.

During the quote’s weakness past 1.3555, the January 19 swing high and 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, could challenge the USD/CAD bears around 1.3520 and 1.3490 in that order.

Meanwhile, recovery moves depend upon the Loonie pair’s ability to provide a daily closing beyond the aforementioned resistance line, close to 1.3725 by the press time.

Following that, the 1.3755-65 zone may act as an extra check towards the north before directing USD/CAD bulls to the monthly high of 1.3861.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.3676
Today Daily Change	-0.0056
Today Daily Change %	-0.41%
Today daily open	1.3732

Trends
Daily SMA20	1.3686
Daily SMA50	1.3515
Daily SMA100	1.3511
Daily SMA200	1.3352

Levels
Previous Daily High	1.3745
Previous Daily Low	1.3657
Previous Weekly High	1.3828
Previous Weekly Low	1.3652
Previous Monthly High	1.3666
Previous Monthly Low	1.3262
Daily Fibonacci 38.2%	1.3711
Daily Fibonacci 61.8%	1.369
Daily Pivot Point S1	1.3678
Daily Pivot Point S2	1.3623
Daily Pivot Point S3	1.359
Daily Pivot Point R1	1.3765
Daily Pivot Point R2	1.3799
Daily Pivot Point R3	1.3853

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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