#USDCAD @ 1.33330 holds lower ground at weekly bottom, pressured after two-day downtrend., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/CAD holds lower ground at weekly bottom, pressured after two-day downtrend.
• Clear downside break of key EMA, Fibonacci retracement join looming bear cross on MACD to lure bears.
• Monthly resistance line, descending trend line from October challenge pair buyers.

The pair currently trades last at 1.33330.

The previous day high was 1.338 while the previous day low was 1.3325. The daily 38.2% Fib levels comes at 1.3346, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3359, expected to provide resistance.

USD/CAD remains depressed around 1.3330 even as bulls and bears jostle during early Tuesday, due to the market’s inaction ahead of the key US inflation data. In doing so, the Loonie pair probes the two-day losing streak at the lowest levels in more than a week.

It’s worth noting that the quote’s sustained downside break of the 100-day Exponential Moving Average (EMA) and the 61.8% Fibonacci retracement level of the September-October upside joins a looming bear cross on the MACD to keep USD/CAD sellers hopeful.

As a result, a convergence of the ascending trend line from mid-November and the 200-day EMA, around 1.3270 by the press time, gains major attention.

Should the pair offers a clear downside break of the 1.3270 key level, the last November’s low near 1.3225 may act as a validation point for the south-run targeting the September 2022 bottom surrounding 1.2955. It should be observed that the 1.3100 and the 1.3000 round figures may act as intermediate halts during the anticipated fall.

Meanwhile, the stated key Fibonacci retracement level, also known as the golden ratio, guards immediate USD/CAD rebound near 1.3345, a break of which highlights the 100-day EMA level of 1.3410.

Following that, a descending resistance line from January 19 and a four-month-old downward-sloping trend line, respectively around 1.3455 and 1.3530, could challenge the USD/CAD bulls.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3334 at the time of writing. Pair opened at 1.3336 and is trading with a change of -0.01% % .

The pair is trading below its 20 Daily moving average @ 1.3382, below its 50 Daily moving average @ 1.3487 , below its 100 Daily moving average @ 1.3529 and above its 200 Daily moving average @ 1.3238

The previous day high was 1.338 while the previous day low was 1.3325. The daily 38.2% Fib levels comes at 1.3346, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3359, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3314, 1.3292, 1.3259
• Pivot resistance is noted at 1.3369, 1.3402, 1.3424

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