USD/CAD Price Analysis: Stays pressured towards 1.3690 support
- USD/CAD fades bounce off three-week-old support line, grinds lower of late.
- Receding bullish bias of MACD, descending RSI line lure sellers.
- 100, 200 EMAs act as additional downside filters.
- Weekly descending trend line holds the key to Loonie pair’s run-up towards refreshing 2023 top.
USD/CAD holds lower ground near 1.3750 as it pares the biggest daily gains in a week during early Thursday morning in Europe. In doing so, the Loonie pair fades the previous day’s bounce off a three-week-old ascending support line while printing mild losses of late.
Apart from failing to rebound from the short-term key support, the receding bullish bias of the MACD signals and the RSI (14) line’s downward move, not oversold, also keeps the USD/CAD bears hopeful of poking the 1.3690 level, comprising the aforementioned trend.
It’s worth noting, however, that the 100-bar and 200-bar Exponential Moving Averages (EMAs), respectively near 1.3660 and 1.3585, could challenge the USD/CAD bears afterward.
Also acting as a downside filter is the 50% Fibonacci retracement level of the pair’s February-March upside, near 1.3565.
On the flip side, a downward-sloping resistance line from March 10, close to 1.3810 at the latest, appears crucial for the USD/CAD buyers to watch during the pair’s further upside as a clear break of which could quickly refresh the year 2023 peak, currently around 1.3860.
In that case, October 2022 peak surrounding 1.3980 and the 1.4000 psychological magnet will gain major attention.
USD/CAD: Four-hour chart
Trend: Further downside expected