#USDCAD @ 1.36992 struggles for clear directions inside a trend widening formation., @nehcap view: Grinding higher (Pivot Orderbook analysis)

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• USD/CAD struggles for clear directions inside a trend widening formation.
• Sustained trading beyond monthly support, 200-SMA keeps buyers hopeful.
• Monthly top, May 2020 peak could lure buyers past 1.3840, sellers have a bumpy road to return.

The pair currently trades last at 1.36992.

The previous day high was 1.3774 while the previous day low was 1.3607. The daily 38.2% Fib levels comes at 1.371, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3671, expected to provide support.

USD/CAD treads water around 1.3700 during Tuesday’s Asian session, taking rounds inside a one-week-old megaphone formation of late.

Although the latest bearish megaphone advocates a gradual pullback of the USD/CAD prices, the firmer oscillators and the pair’s sustained trading beyond the key supports to keep the buyer hopeful. Among the important supports, the one-month-old ascending trend line, the stated megaphone’s lower line and the 200-SMA are crucial.

Hence, the USD/CAD pair’s latest weakness could initially aim for the monthly support of 1.3640 before extending a rebound from the megaphone’s support, near 1.3585.

Should the quote fails to rebound from 1.3585, the following moves reject the trend-widening pattern and highlight the 200-SMA level of 1.3560 as the next strong support.

In a case where the USD/CAD bears dominate past 1.3560, the odds of witnessing a fresh low, currently around 1.3500 can’t be ruled out.

Alternatively, recovery moves may initially aim for the megaphone’s upper line, close to 1.3840 at the latest, before challenging the monthly top surrounding 1.3980.

During the quote’s run-up beyond 1.3980m, the 1.4000 psychological magnet could test the USD/CAD bulls before directing them to the mid-2020 peak near 1.4175.

Trend: Grinding higher

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3702 at the time of writing. Pair opened at 1.3705 and is trading with a change of -0.02% % .

The pair is trading below its 20 Daily moving average @ 1.3723, above its 50 Daily moving average @ 1.3377 , above its 100 Daily moving average @ 1.3133 and above its 200 Daily moving average @ 1.2917

The previous day high was 1.3774 while the previous day low was 1.3607. The daily 38.2% Fib levels comes at 1.371, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3671, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3616, 1.3528, 1.3449
• Pivot resistance is noted at 1.3784, 1.3863, 1.3952

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