USD/CAD Price Analysis: Loonie pair seesaws near 1.3250, downside appears more impulsive
- USD/CAD struggles for clear directions between 50-EMA and 12-day-old resistance line.
- Previous resistance line, 200-EMA acts as additional trading filters.
- Bearish MACD signals challenge recovery from yearly low, lures Loonie pair sellers.
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.
USD/CAD: Four-hour chart
Trend: Downside expected