#USDCAD @ 1.36770 The smart money has been channelizing after a pullback move from 1.3600. (Pivot Orderbook analysis)

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• The smart money has been channelizing after a pullback move from 1.3600.
• USD/CAD is hovering around the 50-EMA, therefore, the explosion will be crucial.
• A bearish range shift by the RSI (14) will trigger a downside momentum.

The pair currently trades last at 1.36770.

The previous day high was 1.3833 while the previous day low was 1.3603. The daily 38.2% Fib levels comes at 1.3691, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3745, expected to provide resistance.

The USD/CAD pair is declining firmly in the early Tokyo session after failing to cross the 1.3750 hurdles on Thursday. Broadly, the asset has turned sideways after a pullback move from 1.3600. The major is oscillating in a 1.3656-1.3756 range.

On an hourly scale, the asset witnessed a steep fall after sensing exhaustion in the uptrend. The major was on a spree of making higher highs while the momentum oscillator, Relative Strength Index (RSI) (14) made a lower high, which indicates a loss in the upside momentum. And, the downside bias got strengthened after dropping below Tuesday’s low at 1.3640.

It is worth noting that the pullback move after hitting a low of 1.3600 seems to conclude where investors have poured smart money by supporting the loonie bulls. The asset has formed a consolidation range around the 50-period Exponential Moving Average (EMA) at 1.3684 and a breakdown of the same will result in sheer weakness in the counter.

Also, the 200-EMA at 1.3564 is looking turn flat, which indicates a loss of momentum in the longer-term trend.

The RSI (14) has shifted into the 40.00-60.00 range and a breakdown into the bearish trajectory of 20.00-40.00 will trigger a downside momentum.

A decisive break below the round-level support placed at 1.3600, which is Wednesday’s low will drag the asset towards the psychological support at 1.3500, followed by September 19 high at 1.3344.

On the flip side, a break above Thursday’s high at 1.3755 will drive the asset towards Wednesday’s high at 1.3833. A breach of the latter will result in a fresh two-year high at 1.4000.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3682 at the time of writing. Pair opened at 1.3614 and is trading with a change of 0.5 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3293, 50 SMA 1.3061, 100 SMA @ 1.296 and 200 SMA @ 1.2823.

The previous day high was 1.3833 while the previous day low was 1.3603. The daily 38.2% Fib levels comes at 1.3691, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3745, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3534, 1.3453, 1.3304
• Pivot resistance is noted at 1.3764, 1.3914, 1.3994

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