USD/CAD Price Analysis: Bears run out of steam around mid-1.3100s ahead of Canada inflation
- USD/CAD remains pressured at the lowest levels in nine months.
- Immediate triangle restricts Loonie pair’s intraday moves amid sluggish oscillators.
- Likely softer Canada inflation can propel USD/CAD prices toward 1.3200 resistance confluence.
- Bulls need acceptance beyond 1.3230 to keep the reins, downside break of 1.3135 will have 1.3080 as additional support.
USD/CAD fades bounces off the lowest levels since September 2022 as it retreats to 1.3150 amid early hours of Tuesday. In doing so, the Loonie pair portrays the market’s optimism about the Canadian inflation data ahead of the release. That said, the quote refreshed a multi-month low the previous day before bouncing off 1.3136.
It should be noted the technical details aren’t supporting the bears as the bottom line of a one-week-old bullish descending triangle joins the sluggish MACD signals and the below 50.0 levels of the RSI (14) line suggest bottom-picking of the Loonie pair.
The same highlights a one-week-old horizontal resistance area surrounding 1.3180 as the immediate hurdle for the USD/CAD buyers to cross to convince markets.
Even so, a convergence of the 50-SMA and the aforementioned triangle’s top line, near 1.3205 at the latest, could challenge the bulls.
Following that, a downward-sloping resistance line from June 05, close to 1.3230, will act as the last defense of the USD/CAD bears.
Meanwhile, the recent lows marked around 1.3140-35, forming part of the previously stated triangle, limit the short-term downside of the Loonie pair.
Following that, tops marked during early May and July of 2022 highlight the 1.3085-80 support zone as an extra filter toward the south.
In a case where the USD/CAD pair remains bearish past 1.3080, the odds of witnessing a slump to the 1.3000 psychological magnet can’t be ruled out.
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