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
|Today last price||1.3868|
|Today Daily Change||-36 pips|
|Today Daily Change %||-0.26%|
|Today daily open||1.3904|
|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|
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