USD/CAD Price Analysis: Bears catch a breather ahead of three-week-old support line

• USD/CAD struggles to keep pullback from four-day low.
• 100/200-bar EMAs guard immediate upside ahead of 1.3275/80 horizontal resistance.
• Multiple downside barriers can probe sellers below short-term trend line support.

USD/CAD fades recovery moves from 1.3214, easing from 1.3234 to 1.3225, during the early Asian session on Tuesday. In doing so, the pair keeps a downside break of the 100-bar and 200-EMA confluence, which in turn directs the quote towards an upward sloping trend line from October 21.

Although an absence of oversold RSI conditions favors the pair’s further downside towards the immediate support line, at 1.3200 now, October 22 high near 1.3175 will precede the October 27 low of 1.3142 to challenge AUD/JPY sellers.

Also acting as downside filters are the 1.3100 threshold and the previous month’s low of 1.3080.

Alternatively, an upside clearance of the EMA joint near 1.3230 will aim for the lows marked during the October end, close to 1.3275/80.

In a case where the AUD/JPY bulls manage to piece 1.3280, the 1.3345/50 and the last month’s peak near 1.3390 will flash on their radars.

USD/CAD four-hour chart

Trend: Further weakness expected