#USDCAD @ 1.36664 holds lower ground near intraday bottom during the first loss-making day in three., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USD/CAD holds lower ground near intraday bottom during the first loss-making day in three.
• Convergence of 21-EMA, horizontal resistance-turned-support from early January challenges sellers.
• Bearish MACD signals, downbeat RSI (14) suggests further downside of the Loonie pair towards monthly low.

The pair currently trades last at 1.36664.

The previous day high was 1.3745 while the previous day low was 1.3657. The daily 38.2% Fib levels comes at 1.3711, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.369, expected to provide resistance.

USD/CAD reverses from a two-week-old resistance line to print the first daily loss in three around 1.3675 heading into Thursday’s European session. In doing so, the Loonie pair pokes a key support confluence comprising the 21-day Exponential Moving Average (EMA) and a horizontal line stretched from early January, the previous resistance.

Not only the failure to cross a short-term descending resistance line but bearish MACD signals and downward-sloping RSI (14) line, not oversold, also favors the Loonie pair sellers as they poke the 1.3660-65 support confluence.

Considering the aforementioned catalysts, the USD/CAD bears appear all-set to witness a near 100 pips of south-run on breaking the 1.3660 level, which in turn highlights the monthly low of 1.3555 that comprises the 50% Fibonacci retracement of the pair’s February-March upside.

During the quote’s weakness past 1.3555, the January 19 swing high and 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, could challenge the USD/CAD bears around 1.3520 and 1.3490 in that order.

Meanwhile, recovery moves depend upon the Loonie pair’s ability to provide a daily closing beyond the aforementioned resistance line, close to 1.3725 by the press time.

Following that, the 1.3755-65 zone may act as an extra check towards the north before directing USD/CAD bulls to the monthly high of 1.3861.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3676 at the time of writing. Pair opened at 1.3732 and is trading with a change of -0.41% % .

The pair is trading below its 20 Daily moving average @ 1.3686, above its 50 Daily moving average @ 1.3515 , above its 100 Daily moving average @ 1.3511 and above its 200 Daily moving average @ 1.3352

The previous day high was 1.3745 while the previous day low was 1.3657. The daily 38.2% Fib levels comes at 1.3711, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.369, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3678, 1.3623, 1.359
• Pivot resistance is noted at 1.3765, 1.3799, 1.3853

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