USD/CAD technical analysis: Buyers attempt comeback from 4H 200MA, multi-day old support-line

USD/CAD nears the short-term key supports comprising 4H 200MA and a week-long ascending trend-line.
1.3200 seems to be the crucial resistance to watch during the upside.

Anil Panchal FXStreet

Failure to cross 1.3200 couldn’t bode well for sellers as USD/CAD stops declining around key short-term support confluence while making the rounds to 1.3140 during early Wednesday.

200-bar moving average on the 4-hour chart (4H 200MA) and seven-day-old ascending trend-line portrays 1.3135/37 as the key support area that buyers can avail to register a bounce towards 38.2% Fibonacci retracement of June-July downpour, at 1.3175 and then target 1.3200 round-figure.

Should there be additional rise past-1.3200, June 21 top near 1.3230 and 61.8% Fibonacci retracement near 1.3275 may lure the bulls.

Alternatively, a downside break of 1.3135 can take rest on 23.6% Fibonacci retracement level of 1.3115 whereas 1.3100 and month’s low near 1.3016 might please sellers afterward.

Adding to note is declining 14-bar relative strength index (RSI) that can trigger the pullback if being oversold around the supports.

USD/CAD 4-hour chart

Trend: Pullback expected

1. R3 1.3232
2. R2 1.3213
3. R1 1.3182
PP 1.3163
1. S1 1.3132
2. S2 1.3112
3. S3 1.3082

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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