- USD / CAD rebounds to new low since late January 2020.
- A two day old downtrend channel, the 200 bar SMA calls into question the rally moves.
- The weekly support line adds to the downside before the 1.3050 / 45 area.
USD / CAD resumes offers near 1.3130 at the start of Friday’s Asian session. The loons cooled their seven-month low the day before before turning around to 1.3101.
Even so, a short-term descending channel and sustained trading of the pair below the 200 bar SMA key keeps sellers hopeful.
As a result, any rise below the 1.3175 level, including 200 bar SMA, becomes fleeting to consider. However, the breakout of channel resistance by the pair, at 1.3150 now, may offer a slight north push.
If the pair manages to break through 1.3175, multiple resistances around 1.3240 / 45 are restraining the rise since August 20.
Meanwhile, a downtrend line from August 24th at 1.3100 may offer immediate support to the pair before channel support near 1.3090.
Given the bears’ power play below 1.3090, the region of 1.3050 / 45, including the lows marked in late January 2020, will be key.
USD / CAD chart 30 minutes