• USD/CAD picks up bids to refresh intraday high, prints the first daily gains in four.
  • Bearish MACD signals, “double top” formation keeps Loonie pair sellers hopeful.
  • Multiple hurdles to challenge buyers, 1.3800 is the key upside hurdle.

USD/CAD recovers from the key Exponential Moving Average (EMA) while snapping a three-day downtrend near 1.3440 heading into Monday’s European session. In doing so, the Loonie pair renews its intraday high while bouncing off the lowest levels in three weeks.

It’s worth noting that the quote’s recovery fails to justify bearish MACD signals and hence suggests limited upside room.

Even so, the USD/CAD pair’s rebound from the 200-EMA, around 1.3420 by the press time, allows the Loonie bears to aim for the 1.3500 threshold.

Following that, the 50% Fibonacci retracement level of the pair’s October-November 2022 downside, near 1.3600, can’t be ruled out.

However, a “double top” bearish chart pattern, with highs surrounding 1.3650-65, appears a tough nut to crack for the USD/CAD bulls.

Even if the Loonie pair defies the bearish formation by crossing the 1.3665 hurdle, a downward-sloping resistance line from late October 2022, close to 1.3800 by the press time, can challenge the pair buyers before giving them control.

Alternatively, a daily closing below the 200-EMA level of around 1.3420 could quickly drag the USD/CAD price towards a four-month-old upward-sloping support line, near 1.3330, a break of which will refresh the yearly low, currently around 1.3260.

USD/CAD: Daily chart

Trend: Limited recovery expected


Today last price1.3439
Today Daily Change0.0014
Today Daily Change %0.10%
Today daily open1.3425
Daily SMA201.3505
Daily SMA501.3507
Daily SMA1001.3518
Daily SMA2001.3507
Previous Daily High1.3452
Previous Daily Low1.3407
Previous Weekly High1.3651
Previous Weekly Low1.3407
Previous Monthly High1.3655
Previous Monthly Low1.3315
Daily Fibonacci 38.2%1.3424
Daily Fibonacci 61.8%1.3435
Daily Pivot Point S11.3404
Daily Pivot Point S21.3383
Daily Pivot Point S31.3358
Daily Pivot Point R11.345
Daily Pivot Point R21.3474
Daily Pivot Point R31.3495