#USDCAD @ 1.37305 struggles to extend the bounce off 21-DMA near fortnight low., @nehcap view: Pullback expected (Pivot Orderbook analysis)
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- USD/CAD struggles to extend the bounce off 21-DMA near fortnight low.
- Confirmation of bearish chart pattern, downbeat MACD signals favor sellers.
- Recovery remains elusive unless crossing three-week-old resistance line.
The pair currently trades last at 1.37305.
The previous day high was 1.3885 while the previous day low was 1.3699. The daily 38.2% Fib levels comes at 1.377, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3814, expected to provide resistance.
USD/CAD fades bounce off a short-term moving average while keeping the bearish break of a rising wedge around 1.3740 during Wednesday’s Asian session. In doing so, the Loonie pair stays depressed near the two-week low.
Given the bearish MACD signals and the confirmation of the five-week-old rising wedge formation on Monday, USD/CAD is likely to remain on the bear’s radar unless successfully crosses the 1.3850 immediate hurdle comprising the wedge’s lower line.
Even if the quote rises past 1.3850, the 1.4000 psychological magnet and the upper line of the bearish chart pattern, around 1.4030 by the press time, will challenge the upside momentum.
However, a clear run-up beyond 1.4030 won’t hesitate to challenge the May 2020 peak surrounding 1.4175.
Alternatively, the 21-DMA level near 1.3690 restricts the immediate downside of the USD/CAD pair before directing the sellers toward the monthly low of around 1.3500.
It should be noted that the 50-DMA, close to 1.3320 at the latest, appears strong support for the bears to conquer past 1.3500.
Overall, USD/CAD is likely to remain on the bear’s radar despite the latest rebound from the 21-DMA support.
Trend: Pullback expected
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.374 at the time of writing. Pair opened at 1.3716 and is trading with a change of 0.17% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.374 |
| 1 | Today Daily Change | 0.0024 |
| 2 | Today Daily Change % | 0.17% |
| 3 | Today daily open | 1.3716 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3674, 50 SMA 1.3287, 100 SMA @ 1.3078 and 200 SMA @ 1.2887.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.3674 |
| 1 | Daily SMA50 | 1.3287 |
| 2 | Daily SMA100 | 1.3078 |
| 3 | Daily SMA200 | 1.2887 |
The previous day high was 1.3885 while the previous day low was 1.3699. The daily 38.2% Fib levels comes at 1.377, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3814, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.3649, 1.3581, 1.3463
- Pivot resistance is noted at 1.3834, 1.3952, 1.402
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3885 |
| Previous Daily Low | 1.3699 |
| Previous Weekly High | 1.3978 |
| Previous Weekly Low | 1.3703 |
| Previous Monthly High | 1.3838 |
| Previous Monthly Low | 1.2954 |
| Daily Fibonacci 38.2% | 1.3770 |
| Daily Fibonacci 61.8% | 1.3814 |
| Daily Pivot Point S1 | 1.3649 |
| Daily Pivot Point S2 | 1.3581 |
| Daily Pivot Point S3 | 1.3463 |
| Daily Pivot Point R1 | 1.3834 |
| Daily Pivot Point R2 | 1.3952 |
| Daily Pivot Point R3 | 1.4020 |
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