#USDCAD @ 1.32518 justifies bearish candlestick formation, bullish channel rejection at multi-day high., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• USD/CAD justifies bearish candlestick formation, bullish channel rejection at multi-day high.
• Downbeat MACD, RSI conditions also keep sellers hopeful to test the key HMAs.
• Recovery moves need validation from the recent high to convince bulls.

The pair currently trades last at 1.32518.

The previous day high was 1.3308 while the previous day low was 1.3227. The daily 38.2% Fib levels comes at 1.3277, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3258, expected to provide resistance.

USD/CAD remains pressured around 1.3345 after reversing from the 22-month high the previous day. In doing so, the Loonie pair justifies the bearish candlestick formation at the multi-day top, as well as a rejection of the previously bullish chart formation, during Tuesday’s Asian session.

Given the RSI and the MACD both support the latest weakness in the USD/CAD prices, the quote is likely to witness further downside.

However, 100-HMA and 200-HMA, respectively around 1.3225 and 1.3135, could challenge the pair sellers before directing them to the 1.3000 psychological magnet.

Even if the quote remains below the 1.3000 mark, the monthly low near 1.2950-55 will act as the final defense for the USD/CAD bulls.

Alternatively, recovery moves may initially aim for the one-week-old bullish channel’s support line, now resistance near 1.3300.

Following that, the top of the “Gravestone Doji”, near 1.3380, will be crucial as an upside break which could reject the bearish signals flashed by the candlestick at the multi-day top. In that case, October 2020 peak surrounding 1.3390 will be in focus.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3252 at the time of writing. Pair opened at 1.3264 and is trading with a change of -0.09% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3091, 50 SMA 1.2973, 100 SMA @ 1.291 and 200 SMA @ 1.2796.

The previous day high was 1.3308 while the previous day low was 1.3227. The daily 38.2% Fib levels comes at 1.3277, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3258, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3225, 1.3186, 1.3144
• Pivot resistance is noted at 1.3305, 1.3347, 1.3386

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