USD/CAD Price Analysis: 1.3160 holds the key to further upside
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USD/CAD Price Analysis: 1.3160 holds the key to further upside

  • USD/CAD struggles to refresh a three-day high flashed on Tuesday.
  • RSI recovery from oversold conditions suggests further consolidation of the declines from 1.3420.
  • 1.3100 offers immediate support ahead of September low.

Despite failing to extend the latest run-up past-1.3150, USD/CAD remains above 1.3100, currently around 1.3140, during the pre-Tokyo open Asian trading on Wednesday. Also favoring the odds of the pair’s further recovery is the RSI pullback from oversold territory.

However, a confluence of 61.8% Fibonacci retracement of September month’s upside and a five-week-old ascending trend line, currently around 1.3155/60, challenge the quote’s immediate advances.

In a case where the USD/CAD bulls manage to cross 1.3160, 50% Fibonacci retracement and 200-bar SMA, respectively around 1.3205 and 1.3215, can entertain them ahead of September 09 top near 1.3260.

Alternatively, the 1.3100 round-figure acts as immediate support before highlighting the 1.3050/45 support area, comprising lows marked on August 28 and September 04, for USD/CAD sellers.

It should, however, be noted that the pair’s weakness below 1.3045 will not hesitate to challenge the previous month’s low surrounding 1.2995.

USD/CAD four-hour chart

Trend: Pullback expected


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