USD/CAD Price Analysis: Snaps four-day uptrend near 1.3600 inside monthly triangle
- USD/CAD bounces off intraday low to pare the first daily loss in five.
- Bullish chart formation keeps buyers hopeful but 200-SMA adds strength to the 1.3655-60 hurdle.
- Bears have a bumpy road to the south unless breaking 1.3495 level.
USD/CAD remains mildly offered around 1.3605 ahead of Wednesday’s European session, posting the first daily loss in five at the latest.
The Loonie pair’s weakness could be linked to its retreat from the 1.3655-60 resistance confluence comprising the 200-SMA and a downward-sloping trend line from October 13.
The pullback moves, however, lack acceptance amid steady RSI, which in turn challenges the pair sellers.
Even so, the one-week-old ascending support line, near 1.3540 by the press time, precedes the aforementioned triangle’s bottom, near 1.3495, to welcome the USD/CAD bears.
Should the quote remains weak past 1.3495, the bullish chart formation gets defied, which in turn directs the USD/CAD pair towards the 61.8% Fibonacci retracement level of September-October upside, near 1.3340.
Alternatively, recovery remains elusive unless the quote stays below the 1.3655-60 resistance confluence.
Following that, multiple levels around 1.3700 and 1.3850 could challenge the USD/CAD buyers before directing them to the previous monthly high near 1.3980.
It should be noted that the RSI is approaching the overbought territory and can poke bulls around 1.3980, if not then the 1.4000 threshold could act as an extra filter to the north.
USD/CAD: Four-hour 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.
