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USD/CAD Price Analysis: Bears near multi-month support close to 1.3470
After a four-day decline, the USD/CAD fluctuates near a five-week low. The 50-day moving average (DMA) has been decisively surpassed, and oscillators are trending lower, which gives sellers optimism. From June 2022 onwards, the primary obstacle for Loonie bears appears to be the ascent of the support line. It is difficult for buyers to reclaim control.
USD/CAD sellers tantalize with 1.3520-25 after falling to the lowest levels since February 22 as markets become volatile on Friday prior to the release of vital US inflation data. Consequently, during the five-day losing sequence, the Loonie pair exhibits minor losses.
However, the successful break below the 50-day moving average and the bearish MACD signals keep sellers optimistic. The lack of an exhausted RSI (14) line bolsters the bearish inclination.
Notably, an upward-sloping support line from early June 2022, which was near 1.3475 at press time, appears to be a formidable obstacle for USD/CAD bearish to overcome on the downside. In addition to highlighting the significance of the 1.3475 level, the RSI's decline below the 50 level suggests that dip-buying is probable near the key support line.
In the event that the Loonie pair breaches the 1.3475 support level, the 200-day moving average and an ascending trend line from mid-November 2022 near 1.3375 and 1.3295 could challenge the bears.
In contrast, recovery moves require confirmation from the 50-day simple moving average (SMA) resistance of 1.3545 to persuade short-term USD/CAD investors.
However, the mid-month low around 1.3650-55 and December 2022 highs near 1.3705 can challenge the Loonie pair's further ascent prior to emphasizing the previous yearly high of 1.3977.
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