#USDCAD @ 1.34789 retreats from the highest levels in a fortnight, snaps two-day uptrend., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• USD/CAD retreats from the highest levels in a fortnight, snaps two-day uptrend.
• Bearish candlestick formation, overbought RSI (14) signals pullback.
• Convergence of two-day-old support line, previous resistance from November 10 challenge bears.
• Bulls need validation from 200-DMA to suggest further upside.

The pair currently trades last at 1.34789.

The previous day high was 1.3505 while the previous day low was 1.3381. The daily 38.2% Fib levels comes at 1.3458, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3428, expected to provide support.

USD/CAD prints mild losses around 1.3490 as it probes the two-day uptrend at the highest levels in a fortnight during early Tuesday.

In doing so, the Loonie pair justifies the bearish candlestick formation, namely the Gravestone Doji, on the four-hour play. Also supporting the pullback move is the RSI (14) line that stays near the overbought region.

As a result, the quote’s pullback towards the 1.3440 support confluence, encompassing an ascending trend line from Friday and the resistance-turned-support from November 10, appears imminent.

However, the 1.3400 threshold and a two-week-old upward-sloping trend line near 1.3340 could challenge the USD/CAD bears afterward.

In the case where the pair remains bearish past 1.3340, the odds of witnessing a fresh monthly low, currently around 1.3225, can’t be ruled out.

Meanwhile, the USD/CAD pair’s upside momentum needs a successful break above the 1.3500 round figure to defy the bearish candlestick formation. Even so, the 200-SMA level surrounding 1.3530 could challenge the pair buyers.

Should the quote manage to remain firmer beyond the 200-SMA, a run-up toward the monthly high near 1.3810 could gain more acceptance.

Trend: Pullback expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3488 at the time of writing. Pair opened at 1.3503 and is trading with a change of -0.11% % .

The pair is trading above its 20 Daily moving average @ 1.3432, below its 50 Daily moving average @ 1.3574 , above its 100 Daily moving average @ 1.3276 and above its 200 Daily moving average @ 1.3015

The previous day high was 1.3505 while the previous day low was 1.3381. The daily 38.2% Fib levels comes at 1.3458, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3428, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3421, 1.334, 1.3298
• Pivot resistance is noted at 1.3545, 1.3586, 1.3668

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