#USDCAD @ 1.34768 extends recovery from seven-week low, grinds higher of late., @nehcap view: Limited recovery expected (Pivot Orderbook analysis)

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• USD/CAD extends recovery from seven-week low, grinds higher of late.
• Convergence of previous support line from June 2022, 100-day EMA challenges Loonie pair’s recovery.
• 38.2% Fibonacci retracement level, five-month-old ascending trend line lures sellers.
• Canada’s monthly employment data for March bears downbeat forecasts and can weigh on prices.

The pair currently trades last at 1.34768.

The previous day high was 1.3484 while the previous day low was 1.3426. The daily 38.2% Fib levels comes at 1.3462, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3448, expected to provide support.

USD/CAD refreshes intraday high near 1.3485 as it pares the weekly gains during a three-day uptrend on early Thursday. The pair’s latest run-up could be linked to a pre-data consolidation amid broad US Dollar strength ahead of the employment data from Canada and the US.

Also read: USD/CAD bulls eye 1.3500 on softer Oil price, firmer US Dollar, focus on Canada employment data

In doing so, the Loonie pair extends Tuesday’s U-turn from the 38.2% Fibonacci retracement of its upside from June-October 2022. The quote’s recovery also takes clues from the latest rebound in the RSI (14) from below 50 levels.

However, a convergence of the 100-day Exponential Moving Average (EMA) and a 10-month-old support-turned-resistance line, around 1.3520 at the latest, appears a tough nut to crack for the Loonie pair buyers.

In a case where the USD/CAD price remains firmer past 1.3520, it can rise towards the 23.6% Fibonacci retracement level of 1.3635 and then to the December 2022 peak of 1.3700.

On the flip side, a downside break of the stated 38.2% Fibonacci retracement level of 1.3425 can restrict the short-term USD/CAD downside.

If the USD/CAD breaks 1.3425 support, an upward-sloping support line from mid-November 2022, around 1.3300 by the press time, can act as the last defense of the USD/CAD buyers.

Overall, USD/CAD is likely to witness a pullback unless bulls manage to cross the 1.3520 hurdle and see welcome data from Statistics Canada.

Trend: Limited recovery expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3481 at the time of writing. Pair opened at 1.3457 and is trading with a change of 0.18% % .

The pair is trading below its 20 Daily moving average @ 1.3653, below its 50 Daily moving average @ 1.3547 , below its 100 Daily moving average @ 1.3526 and above its 200 Daily moving average @ 1.3384

The previous day high was 1.3484 while the previous day low was 1.3426. The daily 38.2% Fib levels comes at 1.3462, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3448, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3428, 1.3398, 1.337
• Pivot resistance is noted at 1.3485, 1.3513, 1.3543

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