USD/CAD Price Analysis: Recovery needs acceptance from golden Fibonacci ratio and Fed Chair Powell
- USD/CAD stays on the front foot after bouncing off the lowest levels in nine months.
- Nearly oversold RSI, looming bull cross on MACD suggest further rebound.
- 10-DMA, 61.8% Fibonacci retracement of August-October 2022 upside prod Loonie pair buyers.
- Fed Chair Powell’s speech at Sintra becomes crucial after recent positive US data.
USD/CAD grinds higher around 1.3200 after positing the biggest daily gains, as well as bouncing off the Year-to-Date (YTD) low, amid early Wednesday morning in Asia.
In doing so, the Loonie pair cheers the market’s optimism, as well as downbeat US Oil price ahead of and Federal Reserve Chairman Jerome Powell’s speech at the ECB Forum in Sintra.
It’s worth noting that the oversold RSI (14) line joined the impending bull cross on the MACD indicator to trigger the USD/CAD pair’s rebound from the lowest levels in nine months.
However, the 10-DMA and the 61.8% Fibonacci retracement of August-October 2022 upside, around 1.3200 by the press time, restricts the short-term rebound of the Loonie pair.
Also acting as a short-term upside hurdle is the three-week-old falling resistance line, close to 1.3240 at the latest.
Above all, the USD/CAD pair’s rebound appears elusive unless crossing the previous support line from November 2022, close to 1.3345 at the latest.
Alternatively, tops marked during early June-July of 2022, around 1.3080-75, act as immediate support to watch during the quote’s pullback move, a break of which will challenge the 1.3000 psychological magnet.
USD/CAD: Daily chart
Trend: Further upside expected