#USDCAD @ 1.33919 grinds higher while paring the biggest daily fall in a fortnight., @nehcap view: Limited recovery expected (Pivot Orderbook analysis)

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• USD/CAD grinds higher while paring the biggest daily fall in a fortnight.
• 50-SMA, ascending trend line from early September restrict immediate downside.
• Seven-week-old horizontal support area challenge buyers before 200-SMA.
• Bearish MACD signals, steady RSI favor short-term sellers.

The pair currently trades last at 1.33919.

The previous day high was 1.346 while the previous day low was 1.3373. The daily 38.2% Fib levels comes at 1.3406, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3427, expected to provide resistance.

USD/CAD seesaws around the intraday high of 1.3391 as bulls struggle to retake control heading into Wednesday’s European session. That said, the Loonie pair reversed from the 1.5-month-old horizontal resistance the previous day while posting the biggest daily loss in two weeks.

However, the quote’s sustained trading beyond the 50-SMA and an upward-sloping support line from September 13, respectively near 1.3340 and 1.3255, seem to keep the USD/CAD buyers hopeful.

Even so, the bearish steady prints of the Relative Strength Index (RSI), placed at 14, join the bearish signals from the Moving Average Convergence and Divergence (MACD) indicator, to suggest that the quote has limited upside momentum.

As a result, the latest recovery may aim for the aforementioned resistance line surrounding the 1.3500 hurdle. However, any further upside will need validation from the 200-SMA level of 1.3580 to convince the USD/CAD buyers.

In a case where the Loonie pair stays firmer past 1.3580, the odds of witnessing a run-up toward the monthly high near 1.3810 can’t be ruled out.

On the contrary, a downside break of the 50-SMA and aforementioned short-term support line, close to 1.3340 and 1.3255 in that order, could challenge the USD/CAD pair’s fresh declines.

Following that, the monthly low of 1.3226 could act as the last defense of the pair buyers.

Trend: Limited recovery expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3389 at the time of writing. Pair opened at 1.3373 and is trading with a change of 0.12% % .

The pair is trading below its 20 Daily moving average @ 1.3471, below its 50 Daily moving average @ 1.356 , above its 100 Daily moving average @ 1.326 and above its 200 Daily moving average @ 1.3001

The previous day high was 1.346 while the previous day low was 1.3373. The daily 38.2% Fib levels comes at 1.3406, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3427, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3344, 1.3315, 1.3257
• Pivot resistance is noted at 1.3431, 1.3489, 1.3518

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