- USD/CAD takes offers to reverse the previous day’s bounce off monthly low.
- RSI, MACD suggests further downside past immediate horizontal support.
- 50-DMA, two-month-old ascending trend line lures bears, fortnight-long resistance line, 21-DMA test buyers.
USD/CAD appears all-set to print a two-week downtrend as sellers approach a short-term key horizontal support during early Friday morning in Europe. In doing so, the Loonie pair slides to 1.3530 as it fades Thursday’s recovery from the lowest levels in a month.
Not only the inability to rebound from the three-week-old region surrounding 1.3500, but the bearish MACD signals and the RSI (14) also keep the sellers hopeful of breaking the nearby support zone.
Following that, a downward trajectory towards the 50-DMA level near 1.3430 and then to the upward-sloping support line from early August, at 1.3280 by the press time, will lure the USD/CAD bears.
In a case where the pair sellers dominate past 1.3280, the early September top near 1.3210 will precede the 1.3200 round figure to restrict the quote’s further downside.
On the flip side, recovery remains elusive below a two-week-old descending resistance line, close to 1.3660 by the press time.
It’s worth noting that the USD/CAD upside past 1.3660 will be challenged by the 21-DMA hurdle of 1.3700, a break of which could convince bulls to attack multiple resistance levels near 1.3840 and the monthly high near 1.3980.
USD/CAD: Daily chart
Trend: Further downside expected