USD/CAD Price Analysis: 50-DMA prods Loonie bears around 1.3600

• USD/CAD remains pressured after reversing from one-month high.
• Bullish MACD signals, 50-DMA challenge Loonie pair’s further downside.
• Convergence of early April top, two-week-old ascending trend line adds to the downside filters.
• Buyers need validation from seven-week-long resistance line, 61.8% Fibonacci retracement.

USD/CAD holds lower grounds near 1.3600 as the 50-DMA challenges the Loonies pair’s U-turn from a one-month high during early Friday. In doing so, the quote also traces the bullish MACD signals while preparing for the consecutive second weekly gain.

That said, the Loonie pair’s latest rebound may aim for a monthly high of near 1.3650. However, a downward-sloping resistance line from early March, near 1.3660 at the latest, can prod the USD/CAD bulls afterward.

Following that, the 61.8% Fibonacci retracement of USD/CAD downside during October-November 2022, around 1.3690, will precede the tops marked during late 2022 near the 1.3700 round figures to restrict the pair’s further upside.

It’s worth noting, however, that the Loonie pair’s successful run-up beyond 1.3700 enables it to challenge the key horizontal resistance area established since October 2022, near 1.3850-60.

On the flip side, a daily closing below the 50-DMA support of around 1.3585 isn’t a clear signal for the USD/CAD pair’s further downside as the early month high and a fortnight-old ascending trend line together highlight 1.3555 as the short-term key support.

In a case where the Loonie pair breaks the 1.3555 support confluence, the odds of witnessing a slump toward the monthly low of 1.3300 can’t be ruled out.

Overall, USD/CAD is likely to remain firmer but the upside room appears limited.

USD/CAD: Daily chart

Trend: Limited downside expected