#USDCAD @ 1.36135 takes offers to renew intraday low, reverses from “double top”., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/CAD takes offers to renew intraday low, reverses from “double top”.
• 100-HMA, two-week-old ascending trend line restrict immediate downside.
• RSI’s pullback from overbought territory, bearish MACD signals favor sellers.
• 200-HMA, 1.3530 act as crucial supports for Loonie pair bears to watch.

The pair currently trades last at 1.36135.

The previous day high was 1.3646 while the previous day low was 1.3561. The daily 38.2% Fib levels comes at 1.3614, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3593, expected to provide support.

USD/CAD welcomes March with a bearish bias as it renews its intraday low near 1.3620 during early Wednesday morning in Europe. That said, the Loonie pair marked the biggest daily gain in a week the previous day, as well as posted the heaviest monthly jump since September 2022 by the end of February.

The quote’s latest pullback could be linked to its inability to cross the late February swing high of 1.3665. In doing so, the pair portrays the double top around 1.3660-65 region.

The chart formation also takes clues from the bearish MACD signals to lure sellers. On the same line could be the RSI (14) pullback from the overbought territory.

Hence, the USD/CAD pair is likely to register further downside. However, a convergence of the 100-Hour Moving Average (HMA) and an upward-sloping support line from mid-February, near 1.3580, appears a tough nut to crack for the bears.

Also adding to the downside filter are the 200-HMA and the weekly low, respectively near 1.3540 and 1.3530.

In a case where the USD/CAD drops below 1.3530 support, the pair confirms the bearish “double top” chart formation, which in turn suggests the theoretical fall towards 1.3400.

Alternatively, a sustained break of the 1.3660-65 hurdle could aim for January’s peak of 1.3685 and the last December’s high near 1.3700 before allowing the USD/CAD bulls a free zone to rule.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.362 at the time of writing. Pair opened at 1.3646 and is trading with a change of -0.19% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3451, 50 SMA 1.346, 100 SMA @ 1.3508 and 200 SMA @ 1.3272.

The previous day high was 1.3646 while the previous day low was 1.3561. The daily 38.2% Fib levels comes at 1.3614, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3593, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3589, 1.3532, 1.3504
• Pivot resistance is noted at 1.3674, 1.3703, 1.376

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