Market news
26.05.2023, 06:58

USD/CAD Price Analysis: Reverses from two-month-old hurdle towards 1.3600

  • USD/CAD renews intraday low, prints the first daily loss in three around monthly top.
  • Key resistance line prods Loonie pair bulls but oscillators, previous run-up suggest the quote’s further advances.
  • Convergence of 50-DMA, three-week-long rising trend line challenges bears.

USD/CAD retreats from the previous monthly high, refreshing intraday low near 1.3625 at the latest, as Loonie buyers return after a two-day recess.

In doing so, the quote portrays a U-turn from a downward-sloping resistance line from March 28, close to 1.3650 by the press time.

The pullback moves, however, appear less impressive as the quote keeps the mid-week breakout of the previous key resistance line stretched from early March amid bullish MACD signals and an upbeat RSI (14) line, not overbought.

Hence, the USD/CAD pair’s pullback remains elusive beyond the resistance-turned-support line of around 1.3560.

Even if the quote breaks the 1.3560 support, a convergence of the 50-DMA and a three-week-long rising trend line, close to 1.3525 at the latest, could challenge the USD/CAD pair sellers before giving them control.

In that case, the 61.8% Fibonacci retracement of February-March upside, near 1.3490, can prod the pair’s downward trajectory targeting an upward-sloping support line from February, around 1.3380.

Alternatively, a daily closing beyond the immediate resistance line surrounding 1.3650 needs validation from the previous monthly high of nearly 1.3670 to recall the Loonie pair buyers.

Following that, the yearly high marked in March around 1.3860 will gain the market’s attention.

USD/CAD: Daily chart

Trend: Bullish


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