#USDCAD @ 1.34504 is aiming to resume its upside journey after testing the breakout region of the Inventory Accumulation. (Pivot Orderbook analysis)

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• USD/CAD is aiming to resume its upside journey after testing the breakout region of the Inventory Accumulation.
• The 50-EMA at 1.3450 is acting as a major cushion for the US Dollar.
• S&P500 futures have attempted a recovery in Asia, portraying a recovery in the risk-on profile.

The pair currently trades last at 1.34504.

The previous day high was 1.3521 while the previous day low was 1.3447. The daily 38.2% Fib levels comes at 1.3475, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3492, expected to provide resistance.

The USD/CAD pair has dropped to near the critical support around 1.3450 in the Asian session. The Loonie asset is following the selling pressure faced by the US Dollar Index (DXY), which has dropped again to near 101.60. The market mood is demonstrating the risk-appetite theme as the S&P500 futures have sensed buying interest in Asia.

Meanwhile, the 10-year US Treasury yields have failed to sustain above 3.40%. It seems that hawkish commentaries from the Federal Reserve (Fed) policymakers have failed to improve the safe-haven’s appeal.

On an hourly scale, USD/CAD is testing the breakout zone of Wyckoff’s Inventory Accumulation area placed in a 1.3322-1.3460 range. The Loonie asset has already delivered a breakout of the accumulation and is now testing the strength of the breakout around January 12 high at 1.3460.

The 50-period Exponential Moving Average (EMA) at 1.3450 is acting as a major cushion for the US Dollar.

Meanwhile, the Relative Strength Index (RSI) (14) is gauging support around 40.00 after a gradual corrective move.

The asset will resume its upside journey after a decisive move above December 27 low at 1.3484, which will drive the asset toward the horizontal resistance placed around 1.3540. A breach of the latter will send the major toward December 28 high at 1.3612.

Alternatively, a breakdown below January 16 high at 1.3418 will strengthen the Canadian Dollar and will drag the asset toward January 9 low at 1.3357 and January 13 low at 1.3322.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3453 at the time of writing. Pair opened at 1.3466 and is trading with a change of -0.1 % .

The pair is trading below its 20 Daily moving average @ 1.3496, below its 50 Daily moving average @ 1.3498 , below its 100 Daily moving average @ 1.351 and above its 200 Daily moving average @ 1.3186

The previous day high was 1.3521 while the previous day low was 1.3447. The daily 38.2% Fib levels comes at 1.3475, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3492, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3435, 1.3404, 1.3361
• Pivot resistance is noted at 1.3509, 1.3552, 1.3583

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