- USD/CAD fails to keep Friday’s recovery moves, refreshes intraday low around 1.3285.
- U-turn from the key EMA, amid normal RSI conditions, favor sellers.
- 50% Fibonacci retracement, Thursday’s low offer nearby supports.
- September 28-29 bottoms can offer additional resistances beyond the key EMA.
USD/CAD declines to 1.3285, down 0.17% intraday, as Tokyo opens for trading on Monday. In doing so, the loonie pair keeps late Friday’s U-turn from the key 200-bar EMA. With the RSI conditions also not oversold, sellers are likely to hold the reins for a bit longer.
As a result, 50% Fibonacci retracement of September 18-30 upside, near 1.3280, offers immediate support to the quote before Thursday’s low close to 1.3265.
In a case where the USD/CAD prices remain weak past-1.3265, September 17 top and 61.8% Fibonacci retracement around 1.3250/45 will challenge the bears.
On the flip side, a clear break above the 200-hour EMA level of 1.3322 will confront late September lows surrounding 1.3255/50.
However, sustained trading beyond 1.3255 will help USD/CAD bulls to challenge the previous month’s top near 1.3420.
USD/CAD hourly chart
Trend: Bearish
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