- USD/CAD picks up bids to reverse intraday losses, probes two-day downtrend.
- Multiple moving averages stand tall to challenge recovery moves.
- MACD, RSI conditions suggest further weakness but 10-week-old support line restricts immediate downside.
USD/CAD licks its wounds during a sluggish Monday morning as the pre-Fed blackout joins the Lunar New Year holidays in China. Even so, the bears remain hopeful as the quote extends the previous day’s pullback from the key moving averages. That said, the Loonie pair reverses the week-start losses near 1.3375 by the press time.
Not only a slew of moving averages but the bearish MACD signals and the mostly steady RSI (14) also keep the USD/CAD sellers hopeful of visiting an upward-sloping support line from November 15, 2022, around 1.3335 at the latest.
It should be noted that the quote’s weakness past 1.3335 could make it vulnerable to dropping toward the September swing high near 1.3205. However, the 200-DMA support of around 1.3195 could challenge the USD/CAD bears afterward.
In a case where the USD/CAD bears keep the reins past 1.3195, the 1.3000 psychological magnet will be in focus.
Alternatively, the 21-DMA guards the pair’s immediate upside around 1.3480 ahead of the convergence of the 50-DMA and the 100-DMA, close to 1.3510-20.
If at all the USD/CAD buyers manage to cross the 1.3520 hurdle, a downward-sloping resistance line from October 13, 2022, near 1.3615, could act as the last defense of the pair sellers.
Overall, USD/CAD remains on the bear’s radar even if the 2.5-month-old support line limits nearby declines.
USD/CAD: Daily chart
Trend: Limited downside expected