USD/CAD Price Analysis: 1.2810 appears a tough nut to crack for bulls
|- USD/CAD reverses pullback from nine-week top, recently picking up bids.
- 78.6% Fibonacci retracement, July’s top and upper line of 12-day-old channel challenge buyers.
- Overbought RSI conditions add to upside filters, bears can rest assured below 50-DMA.
USD/CAD pares intraday losses around 1.2750, down 0.25% on a day as European traders brace for Monday’s bell.
The Loonie pair jumped to the highest levels since late September the previous day but couldn’t cross 78.6% Fibonacci retracement (Fibo.) August-October downside and July’s high surrounding 1.2810. Adding strength to the 1.2810 resistance is the short-term channel’s upper line/
In addition to the failures to cross the key resistance, overbought RSI conditions also challenge the USD/CAD buyers, suggesting smoother roads for the pair’s downside.
That said, the support line of the stated channel, around 1.2660, restricts the short-term downside of the pair, a break of which will highlight 50% Fibo. level of 1.2620.
It should be noted, however, that the USD/CAD weakness past 1.2620 will be challenged by a 50-DMA level of 1.2532.
On the contrary, a daily closing past 1.2810 will aim for September’s high of 1.2900 before August month’s peak of 1.2950 and the 1.3000 psychological magnet lure the pair bulls.
USD/CAD: Daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.