CAD: Bears approach the 1.3670 support in the USD/CAD price chart.

Oct 14, 2022
VOT Research Desk

Market Insights and Analysis

USD/CAD continued yesterday’s decline from 29-month high and recently poked 50-SMA.

Sellers are encouraged by bearish MACD indications and a persistent violation of the upward trend line from September 13.

To regain control, buyers will need to offer a daily close above 1.3865.

Early on Friday morning in Europe, the USD/CAD accepts bids to retest the intraday low near 1.3710. By doing so, the Canadian dollar and the loonie poke the 50-SMA support while extending Thursday’s losses.

Bearish MACD indications and the pair’s sustained downside break of the ascending trend line that has been in place for one month favour sellers lately, it is important to note.

The upward-sloping support line from September 14 is now in the vicinity of 0.9670, and if it is broken, the USD/CAD bears will be on their way to the monthly low, which is currently around 1.3500.

The previous support level from mid-September, which is at the latest close to 1.3745, must be crossed for a recovery to take place.

Nevertheless, a 12-day-old ascending resistance line at roughly 1.3865 may be a problem for the buyers of USD/CAD.

After that, it’s not impossible for a run-up to occur toward the most recent swing high near 1.3980 and then toward the psychological magnet at 1.4000.

Overall, the USD/CAD pair is probably going to continue falling, although the positive trend is still very much intact.

Trend: More weakened CAD is anticipated

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