USD/CAD holds decrease floor close to intraday backside at some point of the first loss-making day in three.
Convergence of 21-EMA, horizontal resistance-turned-support from early January challenges sellers.
Bearish MACD signals, downbeat RSI (14) suggests in addition draw back of the Loonie pair in the direction of month-to-month low.
USD/CAD reverses from a two-week-old resistance line to print the first each day loss in three round 1.3675 heading into Thursday’s European session. In doing so, the Loonie pair pokes a key help confluence comprising the 21-day Exponential Moving Average (EMA) and a horizontal line stretched from early January, the preceding resistance.
Not solely the failure to pass a temporary descending resistance line however bearish MACD alerts and downward-sloping RSI (14) line, now not oversold, additionally favors the Loonie pair dealers as they poke the 1.3660-65 aid confluence.
Considering the aforementioned catalysts, the USD/CAD bears show up all-set to witness a close to one hundred pips of south-run on breaking the 1.3660 level, which in turn highlights the month-to-month low of 1.3555 that includes the 50% Fibonacci retracement of the pair’s February-March upside.
During the quote’s weak spot previous 1.3555, the January 19 swing high and 61.8% Fibonacci retracement level, additionally regarded as the golden Fibonacci ratio, ought to task the USD/CAD bears round 1.3520 and 1.3490 in that order.
Meanwhile, healing strikes rely upon the Loonie pair’s capability to furnish a day by day closing past the aforementioned resistance line, shut to 1.3725 via the press time.
Following that, the 1.3755-65 sector can also act as an more take a look at in the direction of the north earlier than directing USD/CAD bulls to the month-to-month excessive of 1.3861.