USD/CAD Price Analysis: Bulls have a bumpy road ahead

• USD/CAD fades bounce off intraday low, struggles to reject two-day downtrend.
• Multiple hurdles to the north join downbeat RSI conditions to challenge bulls.
• Sellers have comparatively smoother roads to travel on breaking 1.3560.

USD/CAD retreats to 1.3588 as bulls struggle to defend the first daily gains in three heading into Friday’s European session. In doing so, the Loonie pair justifies downbeat RSI (14), as well as failures to cross the near-term key hurdles, in teasing the bears.

That said, the latest lows surrounding 1.3560 holds the key for the USD/CAD seller’s entry, a break of which could quickly drag the quote towards the December 02 swing high near 1.3520.

Following that, the 1.3500 round figure may act as an intermediate halt before highlighting the two-week-old support line, close to 1.3435 at the latest, for the pair bears.

In a case where USD/CAD bears dominate past 1.3435, the odds of witnessing a fresh monthly low, currently around 1.3385, can’t be ruled out.

On the flip side, a one-week-old horizontal resistance area near 1.3600 restricts the immediate upside of the USD/CAD pair.

Also acting as the key barrier for the pair buyers is the 1.3640-45 area that encompasses multiple levels marked since November 29.

Overall, USD/CAD remains pressured unless the quote successfully breaks the 1.3645 hurdle.

USD/CAD: Hourly chart

Trend: Further downside expected