- USD / CAD softens recoveries from the 50% Fibonacci retracement level.
- The bullish MACD, a two week support line keeps buyers hopeful.
- The 61.8% Fibonacci retracement adds to the downside filter.
USD / CAD drops to 1.3081 during Asian trading on Monday. Even so, the pair is keeping its u-turn after a 50% Fibonacci retracement from November 09 to 13 upward in a bullish MACD. An uptrend line from November 10 also favors buyers.
Therefore, USD / CAD bulls may look for further entry on the immediate bullish resistance line breakout, stretched from November 13, to 1.3102 now, while watching 1.3170 / 75 as the next hurdle north. .
If the buyers manage to tackle the resistance at 1.3175, the round figure of 1.300 and the monthly high of 1.3370 will grab the market’s attention.
On the downside, a clear break below a two week old support line, currently around 1.3050, becomes necessary for bears before revisiting the 50% Fibonacci retracement and lower lows around 1.3030.
It should be noted, however, that the dominance of USD / CAD sellers above 1.3030 can be tested by the 61.8% Fibonacci retracement level of 1.3020 and the psychological magnet of 1.3000 before highlight the monthly bottom near 1.2930 for the bears.
USD / CAD hourly chart
Trend: continuation of the expected recovery