- A successful break of 61.8% Fibonacci retracement highlights four-month-old trend-line resistance.
- Key data from the US will provide fresh near-term direction.
The U-turn from 1.3375 at the May-start triggered the USD/CAD pair’s gradual increase to 1.3470 on early Friday.
Given the pair’s sustained trading beyond 61.8% Fibonacci retracement of December – February decline, it is more likely to revisit 1.3520/25 resistance area with an upward sloping trend-line since January 07, at 1.3540, being a follow-on target.
Though, an area covering late-December lows around 1.3570/65 can questions bulls afterward, if not then 1.3610 and 1.3665 might flash on the chart.
On the downside, 61.8% Fibonacci retracement level of 1.3435 could act as immediate support during the pullback, a break of which can recall 1.3400 as a quote.
Should there be additional declines below 1.3400, 1.3375 and 50-day SMA level of 1.3360 may become sellers’ favorites.
USD/CAD daily chart
Trend: Positive