USD/CAD Price Analysis: Depressed near triple bottoms above 1.3100

  • USD/CAD fails to keep the bounces off 1.3132, the lowest since January 24.
  • Multiple pullbacks between 1.3135 and 1.3132 challenge bears.
  • Bulls should look for entries beyond 100-bar SMA.

USD/CAD drops to 1.3141 during the pre-Tokyo open trading on Thursday. The loonie pair refreshed the multi-week low the previous day before recovering from 1.3132. Though, the following weakness again highlights the 1.3135-30 area as the key support comprising triple bottoms.

While a clear break of 1.3130 signals the pair’s drop to 1.3015, considering the difference between the extreme low and high marked within the pattern, January 09 high near 1.3100 may offer intermediate halt during the fall.

Additionally, the pair’s extended south-run past-1.3015 will have to defy the 1.3000 psychological magnet before aiming the year 2019 bottom surrounding 1.2950.

On the flipside, 1.3160 and 1.3200 can entertain the short-term buyers, if any, ahead of challenging the sentiment by 100-bar SMA level near 1.3245.

It should, however, be noted that the quote’s ability to cross 1.3245 will propel it towards August 07 high of 1.3398.

USD/CAD four-hour chart

Trend: Pullback expected

 

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