The USDCAD pair is facing difficulty in determining its next move as it is caught between the 50-day Exponential Moving Average (EMA) and a resistance line that has been in place for the past 12 days. The perspective from @nehcap suggests that there is an anticipation for a decline in the value of the currency pair.

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• USD/CAD struggles for clear directions between 50-EMA and 12-day-old resistance line.

The pair currently trades last at 1.32628.

The previous day high was 1.3285 while the previous day low was 1.3207. The daily 38.2% Fib levels comes at 1.3255, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3237, expected to provide support.

USD/CAD remains sidelined near 1.3250-60 despite picking up bids ahead of Monday’s European session. In doing so, the Loonie pair stays within a short-term trading range comprising the 50-Exponential Moving Average (EMA) and an upward-sloping resistance line from mid-June.

It’s worth noting the quote’s successful upside break of the one-month-old previous resistance line joins a U-turn from the 50-EMA to keep the USD/CAD buyers hopeful. However, the stated 200-EMA and bearish MACD signals challenge the pair’s advances.

Hence, the Loonie pair remains on the bear’s radar unless it stays below the 200-EMA level of around 1.3330. That said, the fortnight-old resistance line guards the immediate upside of the quote near 1.3290.

In a case where the USD/CAD price crosses the 1.3330 hurdle, the June 12 swing high of near 1.3385 will act as the last defense of the bears.

Alternatively, the 50-EMA and the aforementioned resistance-turned support line from June 05, respectively near 1.3230 and 1.3170, limits the nearby downside of the USD/CAD pair.

Following that, the yearly low marked in the last week around 1.3115 and the 1.3000 psychological magnet will gain the market’s attention.

Trend: Downside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3263 at the time of writing. Pair opened at 1.3248 and is trading with a change of 0.11% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.327, 50 SMA 1.3423, 100 SMA @ 1.3495 and 200 SMA @ 1.3514.

The previous day high was 1.3285 while the previous day low was 1.3207. The daily 38.2% Fib levels comes at 1.3255, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3237, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3209, 1.3169, 1.313
• Pivot resistance is noted at 1.3287, 1.3325, 1.3365

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