#USDCAD @ 1.34649 USDCAD stays depressed after snapping two-day winning streak, reversing from 50-DMA., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• USDCAD stays depressed after snapping two-day winning streak, reversing from 50-DMA.
• Failure to stay beyond 50-DMA, two-month-old descending resistance line keeps Loonie pair sellers hopeful despite sluggish MACD signals.
• Rising support line from early February restricts immediate downside; Bulls need validation from April’s peak.

The pair currently trades last at 1.34649.

The previous day high was 1.3565 while the previous day low was 1.348. The daily 38.2% Fib levels comes at 1.3533, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3512, expected to provide resistance.

USD/CAD bears flirt with the 200-DMA surrounding 1.3465 as they take a breather after the Loonie pair’s biggest daily fall in over a week, especially on the release day of the US Retail Sales and Canada inflation data.

Also read: USD/CAD dives as the Canadian Dollar rides on higher oil prices, soft USD

The Loonie pair reversed from the 50-DMA the previous day to snap a two-day uptrend. The pair’s following declines, however, failed to gain support from the MACD and hence the USD/CAD bears struggle near the 200-DMA support near 1.3465-60 by the press time.

Even if the quote breaks the 200-DMA key support, an upward-sloping support line from early February, close to 1.3365 by the press time. It’s worth noting that the 1.3400 round figure may act as an intermediate halt between the key DMA and the stated support line.

In a case where the USD/CAD bears keep the reins past 1.3365, the odds of witnessing a slump toward the yearly low marked in February near 1.3260 can’t be ruled out. Though, lows marked in April and mid-February, near 1.3340 and 1.3270 respectively, may prod the pair sellers.

On the flip side, the USD/CAD pair’s recovery can aim for the 50-DMA hurdle of around 1.3560 ahead of challenging a 10-week-old descending resistance line, close to 1.3585 by the press time.

Should the quote remains firmer past 1.3585, the previous monthly high of near 1.3665 will be crucial for the Loonie pair buyers before targeting the late March swing high of 1.3805.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3465 at the time of writing. Pair opened at 1.3552 and is trading with a change of -0.64% % .

The pair is trading below its 20 Daily moving average @ 1.3504, below its 50 Daily moving average @ 1.3569 , below its 100 Daily moving average @ 1.3514 and above its 200 Daily moving average @ 1.346

The previous day high was 1.3565 while the previous day low was 1.348. The daily 38.2% Fib levels comes at 1.3533, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3512, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3499, 1.3447, 1.3414
• Pivot resistance is noted at 1.3585, 1.3618, 1.367

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