Forex world

March 17, 2023

USD/CAD: Key HMAs challenge bulls above 1.3700

- USD/CAD holds lower grounds after declining below 50-HMA, 100-HMA.

- Downbeat oscillators direct sellers towards a two-week-old ascending support line.

- Bulls may aim for weekly resistance line on crossing 1.3740 hurdle.

USD/CAD struggles for clear directions around 1.3720-25 after welcoming the bears the previous day. In doing so, the Loonie pair stays defensive while keeping Thursday’s downside break of the 100 and 50 Hourly Moving Averages (HMAs).

Not only the HMA breakdown but the bearish MACD signals and descending RSI (14), not oversold, also keeps the Loonie sellers hopeful of witnessing the further south-run.

That said, the 1.3700 threshold appears to be the immediate support for the USD/CAD sellers to watch ahead of a two-week-old ascending trend line, near 1.3690-85 at the latest.

In a case where the Loonie pair breaks 1.3685, the weekly low surrounding 1.3650 will gain the market’s attention before highlighting the monthly bottom of around 1.3555.

On the flip side, the 100-HMA and the 50-HMA restrict immediate USD/CAD recovery near 1.3730 and 1.3740 in that order.

However, a descending trend line stretched from the last Friday, near 1.3795, as well as the 1.3800 threshold, could restrict the pair’s upside past 1.3740.

Should the quote rally past 1.3740, the odds of witnessing a fresh Year-To-Date (YTD) high, currently around 1.3860, can’t be ruled out.

Overall, USD/CAD remains sidelined between the fortnight-old and weekly trend lines. However, the latest downside break of the HMAs and downbeat oscillators favor the intraday sellers.

USD/CAD: Hourly chart

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