USD/CAD technical analysis: 50-day EMA, 1.3220/25 exert downside pressure
Our preference: long positions above 1.3135 with targets at 1.3175 & 1.3195 in extension.Alternative scenario: below 1.3135 look for further downside with 1.3120 & 1.3105 as targets.
USD/CAD bounces off 23.6% Fibonacci retracement of May-July downpour.
1.3100 holds the key to October lows, 1.3000 round-figure.
The USD/CAD pair’s recent pullback from 23.6% Fibonacci retracement falls short to conquer 50-day EMA and near-term key resistance-confluence. The quote seesaws around 1.3160 during Wednesday’s Asian session.
Should prices follow static conditions of 14-bar Relative Strength Index (RSI) and extends recovery, 50-day Exponential Moving Average (EMA) level of 1.3193 seems to be the key for intra-day buyers,
a break of which could push them to confront 1.3220/25 region including 100-day EMA and 38.2% Fibonacci retracement.