- USD/CAD witnessed an intraday pullback from near two-week tops.
- The intraday downfall found some support near the 200-hour EMA.
- Mixed technical indicators warrant caution for aggressive traders.
The USD/CAD pair stalled this week’s goodish bounce from three-month lows and witnessed some aggressive long-unwinding trade on Friday. The pair retreated sharply from near two-week tops and eroded a part of the previous session’s strong positive move of over 230 pips.
The steep intraday decline showed some resilience near the 38.2% Fibonacci level of the 1.3316-1.3667 latest leg up. This is followed by 200-hour EMA near the 1.2520 region, which should act as a key pivotal point for traders and help determine the pair’s intraday trajectory.
Meanwhile, mixed technical indicators on hourly/daily charts haven’t supportive of a firm near-term direction. This, in turn, warrants some caution before placing any aggressive directional bets amid fading hopes for a V-shaped global economic recovery from the coronavirus pandemic.
In the meantime, 23.6% Fibo. level, around the 1.3585 region, now seems to act as an immediate resistance, above which the pair seems all set the test the 1.3625 horizontal resistance. The momentum could further get extended towards daily swing lows, near the 1.3665 supply zone.
On the flip side, a convincing break below the 200-hour EMA support might be seen as a fresh trigger for bearish traders and accelerate the fall towards the 1.3485 support zone. Bears might eventually aim back towards challenging the 1.3400 round-figure mark.
USD/CAD 1-hourly chart
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Technical levels to watch
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