- USD / CAD remains under pressure near its lowest since January 2020.
- Failure to cross a confluence of short-term resistance favors sellers.
- 200-HMA adds upward barriers for entry of bulls.
USD / CAD falls to 1.3085, down 0.10% on a day, during open trading pre-Tokyo on Monday. In doing so, the loonie remains depressed for the fifth day in a row while pulling back to the seven-month low.
The pair rebounded to 1.3047, the multi-week low on Friday, but was unable to cross a 50-HMA join and downtrend line from August 25.
As a result, sellers are currently aiming for Friday’s low near 1.3050 before attacking the late January low around 1.3035 / 30 and the 1.3000 threshold. However, further weakness in the pair might not help but attack the annual low around 1.2950.
On the contrary, a bullish breakout of the resistance confluence of 1.3115 / 20 will trigger the further rise in the quote towards a 200 HMA level of 1.3170.
However, 1.3200 round digits and several highs marked from August 20 to 25 can challenge bulls beyond 200-HMA.
USD / CAD hourly chart