USD/CAD Price Analysis: Keeps pullback from 50-DMA above 1.2620 key support
|- USD/CAD fades the previous day’s bounce from weekly low.
- A confluence of 100-DMA, 50% Fibonacci retracement restrict short-term downside.
- Steady RSI, bullish MACD signals keep buyers hopeful.
- Previous support line, 50-DMA guards nearby advances ahead of January’s top.
USD/CAD remains pressured around 1.2680 during Friday’s Asian session, following the previous day’s U-turn from 50-DMA.
Thursday’s pullback also marked the quote’s inability to cross the previous support line from January 19, around 1.2715.
However, a convergence of the 100-DMA and 50% Fibonacci retracement (Fibo.) of October-December 2021 upside, near 1.2620, becomes the key support to watch during the quote’s further weakness. That said, firmer RSI and MACD signals are in favor of buyers.
Hence, USD/CAD prices are likely to have a limited horizon to move during the key jobs report, between 1.2715 and 1.2620.
Should the quote drops below 1.2620, the mid-January peak near 1.2570 may entertain USD/CAD bears before directing them to the yearly low of 1.2450.
On the contrary, an upside clearance of 1.2715 resistance will direct the quote towards January’s peak of 1.2813.
USD/CAD: Daily chart
Trend: Further upside 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.