USD/CAD Price Analysis: Loonie bears keep their eyes on 1.3300 and US inflation

• USD/CAD fades the week-start bounce off the lowest levels since mid-April.
• Failure to cross five-week-old horizontal hurdle, downbeat oscillators keep sellers hopeful.
• Loonie pair buyers need to takeout 1.3620 to regain powers.

USD/CAD retreats to 1.3380 during early Wednesday in Asia, fading the previous two-day rebound from a monthly low, as traders await the key US inflation numbers for April. Also allowing the Loonie pair traders to consolidate recent gains can be the latest US debt-ceiling jitters are policymakers failed to solve the riddle in the first trial.

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Apart from the risk catalysts, the quote’s failure to cross a horizontal resistance area comprising multiple levels marked since early April, around 1.3405-10, also weigh on the USD/CAD prices.

Furthermore, RSI (14) rebound from the oversold territory and sluggish MACD signals also prod the USD/CAD buyers

With this, the Loonie pair appears all set to challenge a one-month-old horizontal support zone surrounding 1.3315-3300.

Following that, lows marked in February and late 2022, near 1.3260 and 1.3225 in that order, will be in the spotlight.

Alternatively, the USD/CAD pair’s recovery moves past the 1.3410 immediate hurdle isn’t an open welcome to the Loonie pair buyers as the 200-SMA and five-week-old horizontal area, near 1.3510 and 1.3530 respectively, can check the upside moves.

It’s worth noting that a downward-sloping resistance line from March 10, close to 1.3620 by the press time, appears the last defense of the USD/CAD bears.

USD/CAD: Four-hour chart

Trend: Further downside expected