USD/CAD Price Analysis: Slides towards 1.3400 as 21-DMA, previous support line challenge buyers
- USD/CAD retreats from one-week high, renews intraday low while snapping two-day uptrend.
- Previous support line from early August, 21-DMA guards immediate upside.
- 100-DMA, impending bull cross on the MACD tease buyers.
USD/CAD holds lower ground near the intraday bottom surrounding 1.3430 during early Tuesday, snapping a two-day uptrend at the latest.
In doing so, the Loonie pair reverses from the previous support line stretched from August 11, as well as the 21-Day Moving Average (DMA).
However, the looming bull cross on the Moving Average Convergence and Divergence (MACD) indicator joins the quote’s successful trading above the 100-DMA to keep buyers hopeful.
Hence, the latest pullback could aim for the 50% Fibonacci retracement level of the USD/CAD pair’s August-October upside, near 1.3350 by the press time, but its further downside needs to conquer the 100-DMA level of 1.3260 to convince the bears.
Even so, the 61.8% Fibonacci retracement near the 1.3200 threshold could challenge the Loonie pair’s further downside.
Meanwhile, the aforementioned support-turned-resistance and the 21-DMA restrict the USD/CAD pair’s short-term recovery moves near 1.3460 and 1.3480 in that order.
Following that, lows marked during October around 1.3500 and a downward-sloping resistance line from October 13, close to 1.3665 by the press time, will be in the last defenses of the pair sellers.
USD/CAD: Daily 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.
