USD/CAD Technical Analysis: A yearlong support-line gains market attention

• The USD/CAD pair remained broadly unchanged around 1.3100 on early Asian trading.
• Pair’s sustained trading beneath 200-day SMA highlights the importance of yearlong support-line, at 1.3040.

The USD/CAD pair trades broadly unchanged around 1.3100 on early Monday. Pair’s sustained trading under 200-day simple moving average (SMA) signals brighter chances for extended downward trajectory towards a yearlong support-line figure of 1.3040.

USD/CAD: Daily chart

 
Following sustained daily closing beneath 200-day SMA, the USD/CAD pair is more likely to visit a yearlong support-line, at 1.3040 now. Near oversold levels of 14-day relative strength index (RSI) may confine the pair’s downside around 1.3040, if not then 1.3000 can offer an intermediate halt to the drop targeting 1.2970 and the 1.2880.

Given the sellers’ refrain to respect the 1.2880 rest-point, the 1.2780 and the 1.2740 are likely following supports to appear on the chart.

Alternatively, a daily closing beyond 200-day SMA level of 1.3125 could trigger the pair’s upside towards the 1.3200 round-figure, comprising 100-day SMA. During the pair’s additional rise past-1.3200, near term descending trendline, at 1.3260, followed by 50-day SMA level of 1.3345 can entertain the buyers.