Buyers struggle to keep the reins around mid-1.3600s – Crypto News – Crypto News
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Faces rejection near 1.3000 mark, bullish potential intact Faces rejection near 1.3000 mark, bullish potential intact

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Buyers struggle to keep the reins around mid-1.3600s – Crypto News

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3 years ago

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  • USD/CAD fades bounce off 21-DMA amid sluggish RSI.
  • Impending bear cross on MACD, multiple failures to cross 1.3700 keep bears hopeful.
  • Convergence of 50-DMA, five-week-old ascending trend line appears a tough nut to crack for sellers.

USD/CAD retreats to 1.3640 as it pares intraday gains amid a sluggish Friday morning. In doing so, the Loonie pair fades bounce off the 21-DMA while portraying another U-turn below the 1.3700 key hurdle.

It’s worth noting that the RSI (14) remains stable and signals a lack of momentum. However, the looming bear cross on the MACD and failure to cross the key hurdles, as well as the inability to stay beyond crucial moving averages, keeps the USD/CAD bears hopeful.

That said, the 21-DMA support near 1.3580 gains major attention of intraday sellers ahead of the 1.3540 support confluence, encompassing the 50-DMA and an upward-sloping trend line from mid-November.

In a case where the USD/CAD bears manage to conquer the 1.3540 support, the odds of witnessing a slump to the 1.3500 round figure can’t be ruled out.

Though, the 23.6% Fibonacci retracement level of the Loonie pair’s October-November downside, near 1.3400, could challenge the quote’s further declines past 1.3500.

Meanwhile, the 61.8% Fibonacci retracement, also known as the “Golden ratio”, guards the USD/CAD pair’s immediate upside near 1.3690, a break of which could shift the market’s attention back to the 1.3700 hurdle.

Should the USD/CAD bulls manage to stay in the driver’s seat beyond the 1.3700 resistance, a run-up to the previous monthly high near 1.3810 becomes imminent.

Following that, tops marked during October, around 1.3855 and 1.3980, should probe the upside momentum ahead of highlighting the 1.4000 psychological magnet.

USD/CAD: Daily chart

Trend: Limited downside expected

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