USD/CAD Price Analysis: Consolidating before moving to 1.3270 support confluence

• USD/CAD holds lower ground at weekly bottom, pressured after two-day downtrend.
• Clear downside break of key EMA, Fibonacci retracement join looming bear cross on MACD to lure bears.
• Monthly resistance line, descending trend line from October challenge pair buyers.

USD/CAD remains depressed around 1.3330 even as bulls and bears jostle during early Tuesday, due to the market’s inaction ahead of the key US inflation data. In doing so, the Loonie pair probes the two-day losing streak at the lowest levels in more than a week.

It’s worth noting that the quote’s sustained downside break of the 100-day Exponential Moving Average (EMA) and the 61.8% Fibonacci retracement level of the September-October upside joins a looming bear cross on the MACD to keep USD/CAD sellers hopeful.

As a result, a convergence of the ascending trend line from mid-November and the 200-day EMA, around 1.3270 by the press time, gains major attention.

Should the pair offers a clear downside break of the 1.3270 key level, the last November’s low near 1.3225 may act as a validation point for the south-run targeting the September 2022 bottom surrounding 1.2955. It should be observed that the 1.3100 and the 1.3000 round figures may act as intermediate halts during the anticipated fall.

Meanwhile, the stated key Fibonacci retracement level, also known as the golden ratio, guards immediate USD/CAD rebound near 1.3345, a break of which highlights the 100-day EMA level of 1.3410.

Following that, a descending resistance line from January 19 and a four-month-old downward-sloping trend line, respectively around 1.3455 and 1.3530, could challenge the USD/CAD bulls.

USD/CAD: Daily chart

Trend: Further downside expected