USD/CAD Price Analysis: Further downside appears less compelling
- USD/CAD seesaws around intraday low after reversing from 1.5-month-old resistance line.
- Recovery from 100-SMA joins bullish MACD signals, firmer RSI to suggest further advances.
- 200-SMA, monthly support line adds to the downside filters.
USD/CAD picks up bids to pare intraday losses around 1.3640 during early Friday morning in Europe.
In doing so, the Loonie pair reverses the early Asian session pullback from a six-week-old descending resistance line.
That said, the quote’s bounce off the 100-SMA level, around 1.3530 by the press time, joins the bullish MACD signals and the firmer RSI (14), not overbought, to signal the USD/CAD pair’s further advances.
Hence, the quote’s another battle with the aforementioned resistance line, near 1.3675 at the latest, can’t be ruled out.
However, a clear upside break of the same, as well as a run-up beyond the monthly top of 1.3700, becomes necessary for the USD/CAD bull’s conviction.
Following that, a run-up towards the previous monthly top surrounding 1.3810 can’t be ruled out.
On the flip side, the 61.8% Fibonacci retracement level of the pair’s early November moves, near 1.3585, acts as immediate support to watch during the quote’s further downside.
Additionally challenging the USD/CAD bears is an upward-sloping support line from mid-November and the 200-SMA, respectively around 1.3500 and 1.3480.
To sum up, USD/CAD remains on the bull’s radar despite the loss on daily basis.
USD/CAD: Four-hour chart
Trend: Further recovery expected