- Overbought RSI, failure to rise beyond 61.8% Fibonacci retracement favor USD/CAD declines.
- A week-old rising trend-line, 38.2% Fibonacci retracement confluence offers immediate strong support.
Having breached 50% Fibonacci retracement level of late-May to mid-July month downpour, USD/CAD declines to 1.3276 during early Thursday.
Not only pair’s slip below important technical level but gradually falling 14-bar relative strength index (RSI) also favor further pullbacks to 1.3227 support confluence including a week old ascending trend-line and 38.2% Fibonacci retracement.
In a case where prices keep trading southwards past-1.3227, 1.3162/60 becomes the key rest-point as it comprises 100-bar moving average (MA) and a rising support-line since July 18.
Alternatively, pair’s upside beyond 50% Fibonacci retracement of 1.3292 can target the latest high of 1.3346 and 61.8% Fibonacci retracement level of 1.3357. Though, further advances can be limited by 1.3390 and a horizontal area around 1.3430/35 that envelopes multiple extremes since late-May.
USD/CAD 4-hour chart
Trend: Pullback expected
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