USDCAD Price Analysis: Drops below 1.3900, focus on 61.8% Fibonacci retracement

USDCAD Price Analysis: Drops below 1.3900, focus on 61.8% Fibonacci retracement

  • USD/CAD remains weak near the four-week low.
  • Oversold RSI conditions can trigger a pullback from the key Fibonacci retracement support.
  • 200-bar SMA, 18-day-old falling trend line guard immediate upside.

Having slipped below 200-bar SMA, USD/CAD traders near the one-month low while taking rounds to 1.3870 during the pre-European session on Tuesday.

While a sustained break below the key SMA favors the pair’s further declines, oversold RSI conditions point to a pullback from nearby strong support.

As a result, buyers may look for a bounce from 61.8% Fibonacci retracement of March month upside to question the 200-bar SMA level of 1.3960.

However, a downward sloping trend line from March 19, currently at 1.3980, followed by a 50% Fibonacci retracement level of 1.3990 and 1.4000 mark, can restrict the quote’s upside beyond 1.3960.

Alternatively, additional downside past-61.8% Fibonacci retracement level of 1.3830 could revisit mid-March lows near 1.3730 and 1.3700.

USD/CAD four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 1.3868
Today Daily Change -36 pips
Today Daily Change % -0.26%
Today daily open 1.3904
 
Trends
Daily SMA20 1.4173
Daily SMA50 1.3716
Daily SMA100 1.3428
Daily SMA200 1.332
 
Levels
Previous Daily High 1.4002
Previous Daily Low 1.3856
Previous Weekly High 1.4262
Previous Weekly Low 1.3931
Previous Monthly High 1.4668
Previous Monthly Low 1.3315
Daily Fibonacci 38.2% 1.3912
Daily Fibonacci 61.8% 1.3946
Daily Pivot Point S1 1.3839
Daily Pivot Point S2 1.3775
Daily Pivot Point S3 1.3694
Daily Pivot Point R1 1.3985
Daily Pivot Point R2 1.4066
Daily Pivot Point R3 1.413

 

 



Source: FxStreet

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