- USD/CAD consolidates recovery moves from October 2018 low.
- Sustained break of 200-week EMA, multi-month-old support line favor bears.
USD/CAD seesaws around 1.3000/10 during Tuesday’s Asian session. The pair dropped the fresh low since late 2018 lows before bouncing off 1.2928. Even so, the absence of the oversold RSI conditions joins the pair’s clear downside past-key EMA and trend line support suggests the quote’s additional weakness.
While the recent bottom surrounding 1.2930 can offer immediate support, USD/CAD sellers are more inclined to revisit the October 2018 bottom, close to 1.2780, during the further downside.
In a case where USD/CAD buyers fail to return near the two-year low, the May 2018 trough of 1.2729 will gain market attention.
On the contrary, an upside clearance of the medium-term support line stretched from May 2018, at 1.3072 now, acts as immediate resistance for USD/CAD traders to watch ahead of the 200-week EMA level of 1.3128.
Even if the bulls manage to conquer 1.3130, their dominance will be challenged by the monthly high near 1.3390 and the previous month’s peak near 1.3420.
USD/CAD weekly chart
Trend: Bearish
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