- Intraday rejection slide from 200-DMA accelerates post-Canadian GDP.
- Bears now await a sustained break below 1.3225 region – weekly lows.
The USD/CAD pair failed to capitalize on its intraday positive move back closer to weekly tops – levels just above the 1.3300 handle – and faced rejection near the very important 200-day SMA.
The intraday pullback accelerated further following the release of upbeat Canadian GDP growth figures, dragging the pair to the lower end of over two-week-old trading range – around mid-1.3200s.
Given that the pair has repeatedly failed to sustain a move beyond 50% Fibo. level of the 1.3566-1.3016 downfall points to persistent selling at higher levels and support prospects for further declines.
A follow-through selling below the 1.3225-20 support area – weekly lows coinciding with 38.2% Fibo. level – will reaffirm the negative bias and might now be seen as a key trigger for bearish traders.
Below the mentioned support the pair will turn the pair vulnerable to accelerate the slide towards 50-day SMA – sub-1.3200 level – before eventually dropping to its next major support near the 1.3150-45 region.
Meanwhile, immediate resistance is pegged near the 1.3290-1.3300 region, above which the pair might aim to challenge the 1.3345 supply zone, which has been acting as a key barrier since the beginning of this month.
USD/CAD daily chart
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