Back

USD/CAD Price Analysis: Loonie bears seek acceptance from 1.3250 key hurdle

  • USD/CAD extends week-start rebound from yearly low, renews intraday top of late.
  • Convergence of 100-HMA, previous support line guards immediate recovery.
  • Loonie pair sellers need validation from resistance-turned-support line.
  • Triangle breakout, bullish MACD signals favor intraday buyers of USD/CAD.

USD/CAD refreshes intraday high near 1.3235 as it extends the previous day’s rebound from the nine-month low heading into Tuesday’s European session.

In doing so, the Loonie pair justifies triangle breakout, as well as the bulish MACD signals.

However, a joint of the 100-Hour Moving Average (HMA) and previous support line stretched from June 07, around 1.3250, appears a short-term key hurdle for the Loonie pair buyers.

Should the quote manage to cross the 1.3250 resistance confluence, the 200-HMA level of around 1.3300 will act as the final defense of the USD/CAD bears before giving control to the bulls.

In that case, the mid-June swing high around 1.3385 and the monthly peak of 1.3585 will be in the spotlight.

On the contrary, top line of the immediate triangle puts a floor under the USD/CAD price near 1.3215.

Following that, the stated triangle’s bottom low and the latest trough, respectively near 1.3200 and 1.3175, will challenge the USD/CAD sellers ahead of directing them to September 2022 bottom of around 1.2955.

USD/CAD: Hourly chart

Trend: Limited upside expected

 

EUR/USD: Room for further upside – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest there is still scope for EUR/USD to advance further in the near term.
Read more Previous

USD Index extends the recovery to 102.60 ahead of data, Fedspeak

The greenback advances further and reaches new 3-day peaks around 102.60 when tracked by the USD Index (DXY) on turnaround Tuesday. USD Index looks at
Read more Next