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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1.3429
Today Daily Change	-0.0024
Today Daily Change %	-0.18%
Today daily open	1.3453

Trends
Daily SMA20	1.3482
Daily SMA50	1.3556
Daily SMA100	1.3257
Daily SMA200	1.2998

Levels
Previous Daily High	1.3495
Previous Daily Low	1.3375
Previous Weekly High	1.3409
Previous Weekly Low	1.3226
Previous Monthly High	1.3978
Previous Monthly Low	1.3496
Daily Fibonacci 38.2%	1.3449
Daily Fibonacci 61.8%	1.3421
Daily Pivot Point S1	1.3387
Daily Pivot Point S2	1.3321
Daily Pivot Point S3	1.3267
Daily Pivot Point R1	1.3507
Daily Pivot Point R2	1.3561
Daily Pivot Point R3	1.3627

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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