#USDCAD @ 1.31598 takes offers to refresh intraday low, snaps two-day uptrend., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• USD/CAD takes offers to refresh intraday low, snaps two-day uptrend.
• RSI retreat from overbought territory, receding bullish bias of MACD favor pullback from the key resistance line.
• 50-SMA, 61.8% Fibonacci retracement level restricts immediate downside.
• Recovery moves need validation from the yearly top.

The pair currently trades last at 1.31598.

The previous day high was 1.3175 while the previous day low was 1.2954. The daily 38.2% Fib levels comes at 1.3091, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3038, expected to provide support.

USD/CAD stretches the previous day’s pullback from a two-month-old resistance line, the third consecutive one in September, while taking offers to refresh the intraday bottom around 1.3150 during Thursday’s Asian session.

Not only the U-turn from the key resistance line but the RSI’s retreat from the overbought territory and the receding bullish bias of the MACD also favor the USD/CAD bears.

With this, the Loonie pair is all set to revisit the 50-SMA support near 1.3100 before declining towards the 61.8% Fibonacci retracement level of the pair’s July-August downside, close to 1.3030.

It should be noted, however, that a convergence of the 200-SMA and the 50% Fibonacci retracement level around 1.2980-75 appears a tough nut to crack for the USD/CAD bears afterward.

Alternatively, recovery moves need a clear upside break of the aforementioned resistance line from July, at 1.3210 by the press time. Also acting as an upside hurdle is the yearly high marked in July at around 1.3225.

Following that, a run-up towards October 2020 peak around 1.3390 can’t be ruled out.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3158 at the time of writing. Pair opened at 1.316 and is trading with a change of -0.02% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3051, 50 SMA 1.2959, 100 SMA @ 1.2898 and 200 SMA @ 1.2788.

The previous day high was 1.3175 while the previous day low was 1.2954. The daily 38.2% Fib levels comes at 1.3091, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3038, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3018, 1.2875, 1.2796
• Pivot resistance is noted at 1.3239, 1.3318, 1.3461

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