- USD/CAD holds onto Friday’s downbeat performance inside a bearish chart pattern.
- Bullish MACD signals, sustained trading beyond the key SMAs keeps buyers hopeful.
- Sellers need validation from monthly low to retake control.
USD/CAD prints mild losses around 1.3730, keeping Friday’s downbeat performance intact amid Monday’s sluggish Asian session. In doing so, the Loonie pair seesaws around the resistance line of a three-day-old ascending triangle formation.
Even so, the bullish MACD signals and the pair’s successful trading beyond the key moving averages keep the USD/CAD buyers hopeful.
That said, the 50-SMA adds strength to the triangle’s support line surrounding 1.3680, a break of which will confirm the bearish chart pattern.
However, the 100-SMA and the latest swing low, respectively around 1.3570 and 1.3500, could challenge the USD/CAD bears before giving them control.
Following that, the downside move won’t hesitate to aim for the 61.8% Fibonacci retracement of the pair’s September 13-30 upside, around 1.3290.
Meanwhile, a clear upside break of the 1.3760 hurdle will defy the bearish triangle and propel the USD/CAD prices toward the monthly high surrounding 1.3840.
Should the pair buyers cross the 1.3840 resistance, the 61.8% Fibonacci Expansion (FE) of September 14 to October 04 moves, around 1.3930, will be in focus.
USD/CAD: Four-hour chart
Trend: Further upside expected
Additional important levels
|Today last price||1.3729|
|Today Daily Change||-0.0012|
|Today Daily Change %||-0.09%|
|Today daily open||1.3741|