#USDCAD @ 1.37594 pares intraday gains inside a three-day-old triangle formation., @nehcap view: Bullish (Pivot Orderbook analysis)

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• USD/CAD pares intraday gains inside a three-day-old triangle formation.
• RSI conditions, 50-HMA add to the downside filters.
• Bulls need a successful break of 1.3800 for conviction.

The pair currently trades last at 1.37594.

The previous day high was 1.381 while the previous day low was 1.3718. The daily 38.2% Fib levels comes at 1.3775, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3753, expected to provide support.

USD/CAD grinds lower around 1.3770 during early Thursday morning in Europe, after a two-day uptrend, as traders await a clear break of immediate triangle support. In doing so, the Loonie pair portrays the market’s indecision.

Other than the three-day-old symmetrical triangle’s support line, the firmer RSI (14) also keeps the USD/CAD buyers hopeful.

Even if the quote drops below 1.3765 immediate support, it needs validation from the 50-HMA support of 1.3750 to convince the USD/CAD sellers.

In that case, the pair could quickly drop to the weekly low near 1.3655 before declining toward the monthly low surrounding the 1.3500 round figure.

Meanwhile, recovery moves need to cross the aforementioned triangle’s resistance line, around 1.3800 by the press time, to recall the USD/CAD buyers.

Following that, 1.3900 and the monthly high near 1.3980 could entertain the bulls before flashing the 1.4000 mark on the chart.

It’s worth noting that the USD/CAD pair’s successful run-up beyond 1.4000 won’t hesitate to aim for the May 2020 high near 1.4175.

To sum up, USD/CAD is likely to remain on the bull’s radar despite the latest inaction. However, a downside break of 1.3750 might trigger a short-term correction.

Trend: Bullish

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3773 at the time of writing. Pair opened at 1.3766 and is trading with a change of 0.05% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3708, 50 SMA 1.3324, 100 SMA @ 1.31 and 200 SMA @ 1.2899.

The previous day high was 1.381 while the previous day low was 1.3718. The daily 38.2% Fib levels comes at 1.3775, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3753, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.372, 1.3673, 1.3628
• Pivot resistance is noted at 1.3811, 1.3856, 1.3902

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