USD/CAD Price Analysis: Loonie bears attack 100-DMA ahead of US/Canada employment reports
- USD/CAD remains pressured around two-week low, has been drilling 100-DMA in the last fortnight.
- Looming bear cross on MACD, steady RSI keep sellers hopeful of breaking the key support.
- Surprise recovery needs validation from two-month-old descending trend line.
- Mixed forecasts for US, Canada employment data for April keeps Loonie traders on their toes.
USD/CAD fades bounce off 100-DMA as it drops back to 1.3535 amid early Friday in Asia, after refreshing a two-week low the previous day. In doing so, the Loonie pair portrays the market’s anxiety ahead of the April month jobs report from the US and Canada while keeping the fortnight-long fight with an important moving average on.
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Even if the 100-DMA continues to challenge the USD/CAD pair sellers in the last two weeks, the impending bear cross on the MACD and steady RSI suggests a clear break of the 1.3525 DMA support this time.
Following that, a quick drop toward the 61.8% Fibonacci retracement of the Loonie pair’s November 2022 to March 2023 upside, near 1.3465, can’t be ruled out.
However, the early April’s low of around 1.3400 and an upward-sloping support line from November 15, close to 1.3310 at the latest, can challenge the USD/CAD bears afterward.
On the contrary, the Loonie pair’s surprise bounce can’t convince the bulls unless crossing a descending resistance line from March 10, near 1.3640 by the press time.
Even if the quote rises past 1.3640, April’s peak of around 1.3670 may prod the USD/CAD bulls before giving them the control.
USD/CAD: Daily chart
Trend: Further downside expected