- USD / CAD remains on the rear foot near flashed seven-month low on Monday.
- The main SMA probe bears an ascending trendline from April 2018.
- A downtrend line from March offers immediate resistance.
USD / CAD remains under pressure around 1.3170 amid the initial Asian session on Wednesday. The loonie fell to its lowest since late January on Monday before rebounding to 1.3217. However, Tuesday’s sell defied the pair’s upside hopes even as the 200-week SMA limited recent moves.
Given the sluggish RSI conditions and the pair’s sustained trading below the five-month resistance line, sellers should hold the reins, which in turn may drive the listing to the new seven-month low. around 1.3100, including an upward trend. April 2018 line.
In the event that the pair fails to rebound to 1.3100, the 61.8% Fibonacci retracement of the 2017-20 rise, near 1.3055, will entertain the bears before the 1.3000 thresholds.
Meanwhile, buyers will look for entries above 1.3300, with June’s low at 1.3315 likely providing an additional upside filter.
In doing so, the bulls may aim for the May 2019 high around 1.3565, while the late July high near 1.3470 may provide a buffer.
USD / CAD weekly chart