USDCAD Price Analysis: Further downside towards 1.3350 seems plausible
- USDCAD remains pressured at the lowest levels in seven weeks.
- Weekly resistance line, bearish MACD signals keep sellers hopeful.
- A convergence of 61.8% Fibonacci retracement, mid-September swing high lures bears.
- Previous support line from early October, 200-SMA also challenge buyers.
USDCAD seesaws around the intraday low as bears take a breather near the seven-week bottom marked the previous day. That said, the Loonie pair makes rounds to 1.3430 during early Wednesday.
A one-week-old descending trend line portrays the quote’s recent weakness. Also keeping the sellers hopeful are the bearish MACD signal and the clear break of the previous support line from early October. Additionally, the pair’s sustained trading below the 200-SMA also adds strength to the downside bias.
Hence, the USDCAD is all set to refresh the multi-day low marked the previous day around 1.3385.
In doing so, a convergence of the 61.8% Fibonacci retracement level of the pair’s September-October upside and the September 19 swing high, close to 1.3350-45, gains the bear’s attention.
Following that, the early September peak around 1.3200 should return to the charts.
Alternatively, recovery moves need to cross a joint of the weekly resistance line and the 50% Fibonacci retracement level, surrounding 1.3450, to recall the USDCAD buyers.
Even so, the support-turned-resistance around 1.3550 and the 200-SMA near 1.3680 could challenge the pair’s further upside.
USDCAD: Four-hour chart
Trend: Further 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.
