USD/CAD Several barriers to the upside will challenge the bulls

Extends the USD/CAD pair USD/CAD dips from the monthly high.

Mid-month tops and the current uptrend line are on sellers' radar.

The 50-day SMA and the 61.8% Fibonacci retracement levels hold the key to moving to the 200-day SMA.

After retreating from the monthly high, the USD/CAD pair fell USD/CAD Below 1.3130 during the European pre-opening session on Friday. The pair recently failed to breach the 50-day simple moving average, not forgetting the 50% Fibonacci retracement levels of the downside move from September 2019 to January 2020.

Sellers are now targeting several mid-month highs around the 1.3080 area. However, the rising trend line since January 1, at 1.3050, may limit further declines.

As for the upside, the 50% Fibonacci retracement levels and the 50-day SMA will protect against a near-term bounce around 1.3140/50, which in case it is broken could lead to a rise towards the 61.8% Fibonacci retracement levels at 1.3200.

If the bulls manage to keep sentiment above 1.3200, the 200-day SMA at 1.3240 may reappear on the charts.

USD/CAD pair USD/CADdaily chart

direction: expected decline