USD/CAD Price Analysis: Bears keep reins within one-week-old falling channel around 1.3150
- USD/CAD portrays failed recovery from nine-month low, within weekly bearish channel.
- 200-HMA, fortnight-old descending resistance line act as additional upside filters.
- Immediate rising support line can offer intermediate rest to Loonie pair sellers.
USD/CAD stays on the back foot around 1.3160 heading into Monday’s European session, fading the previous day’s corrective bounce off the nine-month low. In doing so, the Loonie pair fades bounce off a three-day-old rising support line within a one-week-old bearish trend channel.
It’s worth noting that the below 50.0 levels of the RSI (14) joins bearish MACD signals to support the downward grind of the USD/CAD price.
However, the immediate rising support line and the stated bearish channel’s bottom, respectively near 1.3150 and 1.3110, can allow the USD/CAD traders to portray bottom-picking. Also acting as the downside filter is the 1.3100 round figure.
It’s worth noting that the rejection of the immediate bearish chart formation, by a successful upside break of the 1.3215 hurdle isn’t enough for the USD/CAD bulls to retake control.
The reason could be linked to the 200-Hour Moving Average (HMA) and a downward-sloping resistance line from June 12, close to 1.3225 and 1.3265 in that order.
Overall, USD/CAD is likely to continue its southward trajectory with intermediate bounces.
Apart from the technical details, the volatile Oil prices and the US Dollar’s retreat also tease the Loonie pair sellers.
Also read: USD/CAD slips below 1.3200 as US Dollar retreats ahead of US/Canada inflation, ignores downbeat Oil Price
USD/CAD: Hourly chart
Trend: Bearish