#USDCAD @ 1.34129 holds lower ground after falling the most in three weeks the previous day., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/CAD holds lower ground after falling the most in three weeks the previous day.
• Convergence of 100-SMA, fortnight-old ascending trend line challenges sellers.
• Any recovery remains elusive below downwards-sloping resistance line from mid-October.

The pair currently trades last at 1.34129.

The previous day high was 1.3594 while the previous day low was 1.3426. The daily 38.2% Fib levels comes at 1.349, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.353, expected to provide resistance.

USD/CAD remains depressed around 1.3420, despite bouncing off the intraday low of 1.3408, as sellers cheer a downside break of 200-SMA during early Thursday. That said, the Loonie pair dropped the most in three weeks the previous day while breaking the key Simple Moving Average (SMA).

In addition to the SMA breakdown, the bearish MACD signals and a clear U-turn from the seven-week-old resistance line, around 1.3585 by the press time, also keep the USD/CAD bears hopeful.

However, the 100-SMA and an ascending support line from mid-November, close to 1.3380, appear a tough nut to crack for the USD/CAD bears.

Following that, a downward trajectory to poke November’s low of 1.3226 can’t be ruled out.

Alternatively, recovery moves may initially aim for the 1.3500 round figure before jostling with the 1.3510 resistance confluence including the 200-SMA and 38.2% Fibonacci retracement level of the October-November downside.

In a case where USD/CAD remains firmer past 1.3510, the bulls could challenge the aforementioned key resistance line from October near 1.3585 before taking control.

Overall, USD/CAD bears may take a breather around 1.3380 but aren’t likely to relinquish control.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3417 at the time of writing. Pair opened at 1.3451 and is trading with a change of -0.25% % .

The pair is trading above its 20 Daily moving average @ 1.3416, below its 50 Daily moving average @ 1.3578 , above its 100 Daily moving average @ 1.3286 and above its 200 Daily moving average @ 1.3022

The previous day high was 1.3594 while the previous day low was 1.3426. The daily 38.2% Fib levels comes at 1.349, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.353, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3387, 1.3322, 1.3218
• Pivot resistance is noted at 1.3555, 1.3659, 1.3723

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