USD/CAD Price Analysis: Bulls Challenge 20-day SMA near 1.2670
|- USD/CAD remains supported near 1.2640 in the Asian session on Monday.
- Multiple support near 1.2640 and 1.2645 makes bulls hopeful.
- Price clings near to ascending trendline, needs confirmation to place an aggressive bid.
USD/CAD trades with a cautious tone on Monday in the early Asian trading hours. The pair confides in a narrow trade band with no meaningful traction. At the time of writing, USD/CAD is trading at 1.2654, up 0.02% for the day.
USD/CAD daily chart
On the daily chart, USD/CAD has been consolidating in the range of 1.2640 and 1.2645 for the past few sessions. The rising trendline from the low made at the beginning of September series near 1.2495 (September 3) acts as defensive for the bulls. If the price breaks the 20-day Simple Moving Average (SMA) at 1.2668 it could trace back to the 1.2725 horizontal resistance level.
Next, USD/CAD bulls would attempt to test Thursday’s high of 1.2796 followed by the 1.2850 horizontal resistance level.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator holds onto the overbought zone with a bearish crossover. Any downtick in the MACD would trigger a fresh round of selling for the pair seeking the first downside target at the 1.2620 horizontal support level. The bears would further be encouraged to move toward the low of September 10 at 1.2582.
Furthermore, a daily close below the mentioned level would make the possibility that USD/CAD can retest the low made on September 3 at 1.2493.
USD/CAD additional levels
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.