• USD/CAD renews intraday low as it fades bounce off five-month-old support line, snaps two-day recovery.
• Canada CPI, BoC Governor Tiff Macklem’s speech appear crucial for Loonie pair traders.
• Failures to cross 200-DMA, descending resistance line from late March challenge USD/CAD bulls.
• Downbeat oscillators keep Loonie bears hopeful of breaking multi-month-old support trend line.

USD/CAD holds lower grounds near the intraday bottom of 1.3375 heading into Tuesday’s European session. In doing so, the Loonie pair reverses from the 200-DMA, as well as a three-week-old resistance line while printing the first daily loss in three.

Not only the failures to cross the key DMA hurdle and the trend line but bearish MACD signals and the RSI’s (14) failure to recover also keeps USD/CAD sellers hopeful ahead of key Canada Consumer Price Index (CPI) data and a speech from the Bank of Canada (BoC) Governor Tiff Macklem.

Also read: USD/CAD Analysis: Struggles to find acceptance above 200 DMA, focus shifts to Canadian CPI

As a result, the USD/CAD pair is well set to break the immediate support, namely the 50% Fibonacci retracement of its August-October 2022 upside, near 1.3350.

Following that, an upward-sloping support line from late November 2022, close to the 1.3300 round figure, will be crucial to watch for the USD/CAD bears as a clear downside break of the same won’t hesitate to refresh the 2023 low, currently around 1.3225.

In that case, the 61.8% Fibonacci retracement level of near 1.3200 will be in focus.

On the contrary, the 200-DMA and aforementioned resistance line from late March, respectively near 1.3405 and 1.3415, guard short-term USD/CAD rebound.

Should the Loonie pair remains firmer past 1.3415, the monthly high of around 1.3455 can act as the last defense of the USD/CAD bears.

USD/CAD: Daily chart

Trend: Further downside expected