USDCAD rebounded on the significant 23.6% Fibonacci retracement level of the down leg from 1.4170 to 1.3315 at 1.3518, trying to erase some losses in the very short-term. The upside tendency in the technical indicators are giving some optimism for fresh gains. The stochastic is moving towards the overbought territory, while the RSI is touching the 50 level with strong momentum.
Should buyers drive above the 40-period simple moving average (SMA) at 1.3592, they could encounter initial strengthened resistance from the upper surface of the Ichimoku cloud and the 38.2% Fibonacci of 1.3643. Overcoming these borders, the price may shoot for the 1.3705 resistance and the 50.0% Fibonacci of 1.3745.
Otherwise, if sellers take control, initial support could come from the 23.6% Fibo of 1.3518 and the low of 1.3485 underneath. Diving further, immediate limitations may arise from the 1.3360 – 1.3315 troughs.
All in all, the very short-term timeframe sustains a neutral mode for now. However, a break below or above the bounds of 1.3485 or 1.3705 could reveal the next direction.
