• USDCAD picks up bids to extend the previous day’s rebound from six-week low.
  • Bearish MACD signals, steady RSI keep sellers hopeful.
  • Buyers can return unless breaking 1.3340, inverted hammer challenges bearish bias.

USDCAD extends the week-start rebound to 1.3510 during early Tuesday morning in Europe.

In doing so, the Loonie pair justifies the previous day’s “inverted hammer” bullish candlestick while poking the 50-DMA hurdle.

It should be noted, however, that the Loonie pair’s sustained break of a one-month-old horizontal area surrounding 1.3500 during the last week joins the bearish MACD signals to suggest the quote’s underlying weakness in momentum.

Hence, the latest rebound appears elusive unless the quote provides a daily closing beyond the 50-DMA hurdle surrounding 1.3515.

Following that, a gradual run-up toward s1.3610 and 1.3720 can’t be ruled out. However, multiple hurdles around 1.3840-50 could challenge the USDCAD bulls afterward.

Meanwhile, fresh sellers could wait for the quote’s downside break of the latest swing low, around 1.3465.

Following that, a convergence of the 50% Fibonacci retracement level of the pair’s August-October upside and a three-month-old ascending support line, surrounding 1.3350-40, will be crucial to watch for the USDCAD bears.

Should the quote provides a daily closing below 1.3340, the odds of witnessing a slump toward the early September highs near 1.3210 can’t be ruled out. Adding strength to the said support is the 61.8% Fibonacci retracement level, also known as the golden ratio.

USDCAD: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price 1.3504
Today Daily Change 0.0013
Today Daily Change % 0.10%
Today daily open 1.3491
 
Trends
Daily SMA20 1.3679
Daily SMA50 1.3504
Daily SMA100 1.3211
Daily SMA200 1.2965
 
Levels
Previous Daily High 1.3553
Previous Daily Low 1.3465
Previous Weekly High 1.3808
Previous Weekly Low 1.3469
Previous Monthly High 1.3978
Previous Monthly Low 1.3496
Daily Fibonacci 38.2% 1.352
Daily Fibonacci 61.8% 1.3499
Daily Pivot Point S1 1.3453
Daily Pivot Point S2 1.3415
Daily Pivot Point S3 1.3365
Daily Pivot Point R1 1.3541
Daily Pivot Point R2 1.3591
Daily Pivot Point R3 1.3629

 

 

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