Nevertheless, sentiment will remain jittery if the pair continues to face limitations around the 23.6% Fibonacci retracement of the 1.2006-1.3976 upleg at 1.3511. The tentative resistance trendline from October’s top of 1.3976 is cementing that ceiling. Hence, a clear close above that wall would attract buyers’ attention, likely lifting the price straight to the 1.3600 number. Then, another victory here may prompt an extension towards the 1.3700-1.3745 boundary.
In the event of a downside reversal, the bears will fight for a break below the 1.3400 floor and the 20-day simple moving average (SMA) with scope to reach the support trendline from June’s low at 1.3330. Slightly lower, the 200-day SMA could immediately calm selling tendencies near the 38.2% Fibonacci of 1.3223. If it fails, the decline may pick up steam towards the 1.3130 handle.
Summing up, USDCAD is maintaining a neutral short- and medium-term outlook. A decisive close above 1.3511 or below 1.3330 could navigate the market accordingly.
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