USD/CAD Price Analysis: Slides to over 1-week lows, dip-buying might help limit losses
- USD/CAD remained under some selling pressure for the second consecutive session.
- Bears might now wait for a sustained break below 23.6% Fibo. level near mid-1.3200s.
The USD/CAD pair continued losing ground through the mid-European session on Wednesday and dropped to over one-week lows in the last hour. Sustained weakness below 200-hour SMA was seen as a key trigger for bearish traders and fueled the ongoing corrective slide from four-month tops set earlier this week.
The pair is currently trading near support marked by 23.6% Fibonacci level of the 1.3036-1.3330 bullish move, which if broken might prompt some fresh selling. The pair then might turn vulnerable to accelerate the slide further towards 38.2% Fibo. level, around the 1.3220 region, en-route the 1.3200 round-figure mark.
Meanwhile, technical indicators on the 1-hourly chart are already flashing slightly oversold conditions. This coupled with the fact that oscillators on the daily chart have managed to maintain their bullish bias further warrant some caution before positioning for any further near-term depreciating move for the major.
Hence, any subsequent weakness seems more likely to attract some dip-buying near the very important 200-day SMA. This coincides with 38.2% Fibo. level and should help limit any deeper losses, at least for the time being.
USD/CAD 1-hourly chart