USD/CAD Price Analysis: Stays defensive above 50-SMA support

USD/CAD licks its wounds after the biggest daily loss in over a week.
50-DMA restricts immediate downside but bearish Doji candlestick, seven-week-old resistance line probe bulls.
Ascending trend line from mid-November puts a strong floor under the prices.

Anil Panchal FXStreet

USD/CAD seesaws around 1.3600 as bearish take a breather during early Friday morning in Asia, after the heaviest slump in eight days.

The Loonie pair’s previous fall could be linked to the bearish Doji candlestick, as well as the U-turn from the seven-week-old downward-sloping resistance line.

However, the bullish MACD signals and the 50-DMA level surrounding 1.3560 challenge the quote’s immediate downside.

In a case where the USD/CAD bears manage to conquer the 50-DMA support, the 38.2% Fibonacci retracement level of the pair’s August-October upside, near 1.3500 threshold, will be on their radars.

Even so, the pair buyers remain hopeful unless witnessing a clear downside break of an ascending support line from the mid-November, at 1.3430 by the press time.

Meanwhile, recovery moves not only need to cross the aforementioned nearby resistance line figures of 1.3665 but also cross the stated Doji’s top of 1.3700 to convince USD/CAD buyers.

Following that, a quick run-up towards the previous monthly peak surrounding 1.3810 can’t be ruled out.

Though, multiple levels surrounding 1.3850 and 1.3900 can test the USD/CAD bulls afterward, before directing them to the yearly high marked in October near 1.3980.

USD/CAD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.3591
Today Daily Change	-0.0060
Today Daily Change %	-0.44%
Today daily open	1.3651

Trends
Daily SMA20	1.3422
Daily SMA50	1.3571
Daily SMA100	1.3316
Daily SMA200	1.3044

Levels
Previous Daily High	1.37
Previous Daily Low	1.3589
Previous Weekly High	1.3646
Previous Weekly Low	1.3381
Previous Monthly High	1.3808
Previous Monthly Low	1.3226
Daily Fibonacci 38.2%	1.3632
Daily Fibonacci 61.8%	1.3658
Daily Pivot Point S1	1.3593
Daily Pivot Point S2	1.3536
Daily Pivot Point S3	1.3483
Daily Pivot Point R1	1.3704
Daily Pivot Point R2	1.3758
Daily Pivot Point R3	1.3815

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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