#USDCAD @ 1.33940 rises above the 200-day EMA but struggles to crack 1.3400. (Pivot Orderbook analysis)

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• USD/CAD rises above the 200-day EMA but struggles to crack 1.3400.
• Upside risks for the USD/CAD lie above 1.3400, which can trigger a rally toward 1.3500.
• USD/CAD failure to crack 1.3400 could pave the way for further losses.

The pair currently trades last at 1.33940.

The previous day high was 1.3396 while the previous day low was 1.3301. The daily 38.2% Fib levels comes at 1.336, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3337, expected to provide support.

The USD/CAD advances after bottoming last Friday at around 1.3300; the pair bounces off and hovers nearby the 1.3400 figure after reaching a high of 1.3420. At the time of writing, the USD/CAD is trading at 1.3395 and is gaining 0.31%.

The USD/CAD dove to new 8-week lows at 1.3300, spurring an increase in the greenback’s demand, even though the Bank of Canada (BoC), in its latest monetary policy, announced the BoC Governing Council discussed raising rates. Nevertheless, current expectations for additional Fed tightening bolstered the US Dollar.

Given the backdrop, the USD/CAD is still neutral to downward biased, but it’s testing the upper boundaries of the 200-day Exponential Moving Average (EMA) at 1.3377. In addition, a daily close of the USD/CAD pair above the latter could exacerbate another leg-up in the pair, initially towards a downslope resistance trendline drawn from November 2022 highs that pass around the 1.3430-50 area. But firstly, the USD/CAD buyers need to reclaim 1.3400.

If USD/CAD cracks the 1.3400 figure, the next resistance would be the trendline mentioned above at 1.3430-50. Once cleared, the USD/CAD could threaten the confluence of the 20 and 100-day EMAs, around 1.3497-1.3504, before rallying towards the 50-day EMA At 1.3534.

Conversely, if USD/CAD stays below 1.3400, that could open the door for further downside. That said, the first support would be the 200-day EMA at 1.3377, followed by the April 17 low at 1.3342, before aiming toward the 1.3300 figure.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3395 at the time of writing. Pair opened at 1.3371 and is trading with a change of 0.18 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.3545, 50 SMA 1.3563, 100 SMA @ 1.3531 and 200 SMA @ 1.3401.

The previous day high was 1.3396 while the previous day low was 1.3301. The daily 38.2% Fib levels comes at 1.336, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3337, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3316, 1.3262, 1.3222
• Pivot resistance is noted at 1.3411, 1.345, 1.3505

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