USD/CAD Price Analysis: 100-day EMA probes bounces off six-week low

• USD/CAD retreats from 100-day EMA after marking a corrective pullback from multi-day low.
• Clear downside break of a four-month-old ascending trend line, bearish MACD signals also favor sellers to aim for 1.3250.
• Buyers need validation from 1.3500 to retake control.

USD/CAD fades bounce off multi-day low, marked the previous day, as the 100-day Exponential Moving Average (EMA) challenges buyers during early Wednesday. That said, the quote currently retreats to 1.3420, after bouncing off the lowest levels since November 25 the previous day.

Not only the inability to cross the 100-day EMA but the Loonie pair’s sustained trading towards the south after breaking an ascending trend line from early September 2022, as well as the bearish MACD signals, also underpin the downside bias for the USD/CAD pair.

As a result, the USD/CAD is likely to decline towards the 1.3250 support confluence, including an upward-sloping support line from June and the 50% Fibonacci retracement level of the pair’s June-October 2022 upside.

Following that, July 2022 peak surrounding 1.3220 could act as the last defense of the pair buyers.

Alternatively, an upside clearance of the 100-day EMA, around 1.3430 by the press time, won’t offer a warm welcome to the USD/CAD buyers as the previous support line, close to 1.3470, acts as an extra filter towards the north.

Even if the quote rises past 1.3470, multiple lows marked since October 2022 around 1.3500 could offer additional challenges for the USD/CAD bulls.

USD/CAD: Daily chart

Trend: Further downside expected