USD/CAD Price Analysis: Tuesday’s Doji candlestick renews bullish bias above 1.3300

USD/CAD remains sidelined after reversing from two-week low.
Bullish candlestick formation, clear bounce off 1.3270 support confluence lure buyers.
November 2022 low adds to the downside filters.

Anil Panchal FXStreet

USD/CAD treads water around 1.3330 during early Wednesday, following a volatile day that initially refreshed two-week bottom before bouncing off the 1.3270 support confluence to end the day near 1.3337. In doing so, the Loonie pair portrayed a bullish Doji candlestick on Tuesday.

Not only the candlestick and the recovery from the convergence of the 200-day Exponential Moving Average (EMA) and a three-month-old ascending trend line but steady RSI (14) and a lack of bearish MACD signals also underpin the bullish bias for the USD/CAD pair.

That said, the 21-day EMA level surrounding 1.3385 guards immediate USD/CAD rebound ahead of the 1.3400 round figure and the monthly peak of near 1.3475.

Following that, a run-up towards the January 19 swing high of 1.3520 and then to the previous monthly high near 1.3685 can’t be ruled out.

On the flip side, the aforementioned support confluence challenges the USD/CAD bears around 1.3270, a break of which will need validation from the lows marked in February 2023 and November 2022, respectively near 1.3260 and 1.3225, to convince Loonie pair bears.

Even so, the 1.3200 threshold could act as the last defense of the pair buyers.

Overall, USD/CAD is up for a short-term rebound but the buyers seek validation from the 21-day EMA.

USD/CAD: Daily chart

Trend: Recovery expected

Additional important levels

Overview
Today last price	1.3338
Today Daily Change	0.0002
Today Daily Change %	0.01%
Today daily open	1.3336

Trends
Daily SMA20	1.3382
Daily SMA50	1.3487
Daily SMA100	1.3529
Daily SMA200	1.3238

Levels
Previous Daily High	1.338
Previous Daily Low	1.3325
Previous Weekly High	1.3476
Previous Weekly Low	1.3338
Previous Monthly High	1.3685
Previous Monthly Low	1.33
Daily Fibonacci 38.2%	1.3346
Daily Fibonacci 61.8%	1.3359
Daily Pivot Point S1	1.3314
Daily Pivot Point S2	1.3292
Daily Pivot Point S3	1.3259
Daily Pivot Point R1	1.3369
Daily Pivot Point R2	1.3402
Daily Pivot Point R3	1.3424

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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