#USDCAD @ 1.35948 remains pressured after reversing from one-month high., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/CAD remains pressured after reversing from one-month high.
• Bullish MACD signals, 50-DMA challenge Loonie pair’s further downside.
• Convergence of early April top, two-week-old ascending trend line adds to the downside filters.
• Buyers need validation from seven-week-long resistance line, 61.8% Fibonacci retracement.

The pair currently trades last at 1.35948.

The previous day high was 1.3646 while the previous day low was 1.3589. The daily 38.2% Fib levels comes at 1.3611, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3624, expected to provide resistance.

USD/CAD holds lower grounds near 1.3600 as the 50-DMA challenges the Loonies pair’s U-turn from a one-month high during early Friday. In doing so, the quote also traces the bullish MACD signals while preparing for the consecutive second weekly gain.

That said, the Loonie pair’s latest rebound may aim for a monthly high of near 1.3650. However, a downward-sloping resistance line from early March, near 1.3660 at the latest, can prod the USD/CAD bulls afterward.

Following that, the 61.8% Fibonacci retracement of USD/CAD downside during October-November 2022, around 1.3690, will precede the tops marked during late 2022 near the 1.3700 round figures to restrict the pair’s further upside.

It’s worth noting, however, that the Loonie pair’s successful run-up beyond 1.3700 enables it to challenge the key horizontal resistance area established since October 2022, near 1.3850-60.

On the flip side, a daily closing below the 50-DMA support of around 1.3585 isn’t a clear signal for the USD/CAD pair’s further downside as the early month high and a fortnight-old ascending trend line together highlight 1.3555 as the short-term key support.

In a case where the Loonie pair breaks the 1.3555 support confluence, the odds of witnessing a slump toward the monthly low of 1.3300 can’t be ruled out.

Overall, USD/CAD is likely to remain firmer but the upside room appears limited.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3595 at the time of writing. Pair opened at 1.3592 and is trading with a change of 0.02% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3482, 50 SMA 1.3584, 100 SMA @ 1.3528 and 200 SMA @ 1.3426.

The previous day high was 1.3646 while the previous day low was 1.3589. The daily 38.2% Fib levels comes at 1.3611, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3624, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3572, 1.3552, 1.3515
• Pivot resistance is noted at 1.3628, 1.3665, 1.3685

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