USD/CAD Price Analysis: Recovery from short term support line eyes 1.3200

• USD/CAD bounces off a three-day-old trend line support while flashing the intraday high.
• 200-HMA, one-week-long resistance line probe immediate upside.
• Bears will target the yearly lows on fresh entries.

USD/CAD rises to 1.3183, intraday high of 1.3187, as markets in Tokyo open for Monday’s trading. The loonie pair recently recovered from an upward sloping trend line stretched from August 19.

As a result, buyers are targeting the 1.3200 round-figures as immediate resistance ahead of 200-HMA around 1.3220.

However, the pair’s further upside will be capped by a falling trend line from August 14, at 1.3230, a break of which will propel the quote towards the August 14 top near 1.3270.

If the buyers fail to keep the throne for long, the aforementioned support near 1.3170 will be the key as it holds the gate for the pair’s fresh declines targeting the monthly low, also the lowest since late-January, around 1.3130.

During the pair’s further downside past-1.3130, 1.3100, 1.3030 and the 1.3000 psychological magnet will be important levels that could flash on the bears’ radars.

USD/CAD hourly chart

Trend: Pullback expected