USD/CAD Price Analysis: Bulls need validation from 1.2880 for further upside
|- USD/CAD eases from three-month high, after five-day uptrend.
- 61.8% Fibonacci retracement level, RSI conditions challenge buyers.
- Tops marked during December 2020, August 2021 lures bulls past 1.2880.
- 10-DMA restricts immediate downside, two-month-old support line becomes the key.
USD/CAD bulls take a breather around the highest levels since late September, easing to 1.2857 during Wednesday’s Asian session.
In doing so, the Loonie pair retreats below 61.8% Fibonacci retracement (FIbo.) level of September 2020 to June 2021 downside, around 1.2880, amid nearly overbought RSI conditions.
Even so, the 10-DMA level of 1.2767 restricts immediate losses ahead of the 50% retracement close to 1.2710.
Also acting as strong support is an upward sloping trend line from late October, surrounding 1.2650 at the latest.
Alternatively, a clear upside break of the 1.2880 hurdle will serve as a trigger to the further advances targeting tops marked during late 2020 and 2021, around 1.2950-60.
Furthermore, a descending trend line from September 2020 near 1.2980 and the 1.3000 threshold will become additional challenges for the USD/CAD bulls to cross past 1.2960.
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.