USD/CAD Price Analysis: 50-EMA prods bears at three-week low

• USD/CAD remains depressed around fortnight low after two-day downtrend.
• Bears remain hopeful as Loonie pair’s U-turn from six-month-old horizontal resistance gains support from downbeat oscillators.
• Ascending trend line from June 2022 gains bear’s attention.
• Buyers need validation from 1.3865 to retake control.

USD/CAD bears struggle to keep the reins during early Wednesday as the 50-day Exponential Moving Average (EMA) probes the Loonie pair’s two-day downtrend near 1.3600 at the latest.

It’s worth noting that the quote’s failure to cross the key horizontal resistance surrounding 1.3845-65, established since September 2022, joins the bearish MACD signals and downbeat RSI (14), not oversold, to keep the Loonie pair sellers hopeful.

That said, a downside break of the immediate 50-EMA support near 1.3590 could quickly drag the USD/CAD price towards an ascending support line from early June 2022, around 1.3450.

However, the RSI is declining below the 50 level and suggests weaker momentum supporting the quote’s further downside. Hence, the Loonie pair may reverse from the stated key support line, if not then the 200-EMA level surrounding 1.3370 can act as the last defense of the USD/CAD buyers.

Alternatively, recovery moves may initially aim for the last December’s peak of around 1.3700 ahead of challenging the previous weekly high of near 1.3805.

Above all, the USD/CAD remains on the bear’s radar unless crossing the aforementioned six-month-old horizontal resistance area between 1.3845 and 1.3865.

USD/CAD: Daily chart

Trend: Further downside expected