- USD/CAD retraces Friday’s drop to the lowest in one month.
- Weak RSI conditions, nearness to 61.8% Fibonacci retracement can challenge bears.
- Buyers may stay away unless witnessing a break of September high.
USD/CAD picks up bids near the intraday high of 1.3130 during the early Asian session on Monday. In doing so, the loonie consolidates Friday’s heavy fall while taking rounds to 200-week EMA support.
Other than the strong support, weak RSI conditions and proximity to one more key rest-point, namely 61.8% Fibonacci retracement of September 2017 to March 2020 upside, also probe the pair sellers.
As a result, the further recovery in the USD/CAD prices can be expected, which in turn highlights the 1.3200 and the early-September tops near 1.3260 as immediate targets for the intraday buyers.
Also likely to challenge the USD/CAD bulls are the 1.3300 threshold, 1.3330 intermediate resistance and the September 30 peak surrounding 1.3420.
Alternatively, the pair’s downside past-200-week EMA level of 1.3127 will drag it closer to the key Fibonacci retracement level of 1.3057 before highlighting the 1.3000 psychological magnet for the bears.
USD/CAD weekly chart
Trend: Pullback expected
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