USD/CAD Worth Evaluation: Sellers assault 1.3660 help confluence to open 100-pip fall

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• USD/CAD holds decrease floor close to intraday backside through the first loss-making day in three.
• Convergence of 21-EMA, horizontal resistance-turned-support from early January challenges sellers.
• Bearish MACD indicators, downbeat RSI (14) suggests additional draw back of the Loonie pair in direction of month-to-month low.

USD/CAD reverses from a two-week-old resistance line to print the primary each day loss in three round 1.3675 heading into Thursday’s European session. In doing so, the Loonie pair pokes a key help confluence comprising the 21-day Exponential Transferring Common (EMA) and a horizontal line stretched from early January, the earlier resistance.

Not solely the failure to cross a short-term descending resistance line however bearish MACD indicators and downward-sloping RSI (14) line, not oversold, additionally favors the Loonie pair sellers as they poke the 1.3660-65 help confluence.

Contemplating the aforementioned catalysts, the USD/CAD bears seem all-set to witness a close to 100 pips of south-run on breaking the 1.3660 stage, which in flip highlights the month-to-month low of 1.3555 that contains the 50% Fibonacci retracement of the pair’s February-March upside.

In the course of the quote’s weak spot previous 1.3555, the January 19 swing excessive and 61.8% Fibonacci retracement stage, also called the golden Fibonacci ratio, might problem the USD/CAD bears round 1.3520 and 1.3490 in that order.

In the meantime, restoration strikes depend on the Loonie pair’s means to supply a each day closing past the aforementioned resistance line, near 1.3725 by the press time.

Following that, the 1.3755-65 zone could act as an additional examine in direction of the north earlier than directing USD/CAD bulls to the month-to-month excessive of 1.3861.

USD/CAD: Each day chart

Development: Additional draw back anticipated