USD/CAD Price Analysis: Multiple upside barriers to challenge the bulls
|- USD/CAD extends declines from the monthly top.
- The mid-month tops, the immediate ascending trend line on sellers’ radar.
- 50-day SMA, 61.8% Fibonacci retracement hold the key to 200-day SMA.
Following its pullback from the monthly top, USD/CAD drops to sub-1.3130 area during the pre-Europe session on Friday. The pair recently failed to cross 50-day SMA, not to forget 50% Fibonacci retracement level of September 2019 to January 2020 fall.
Sellers now target multiple highs marked during the middle of the month around 1.3080. However, an upward sloping trend line since January 01, at 1.3050, could question further declines.
On the upside, 50% Fibonacci retracement and 50-day SMA will guard the near-term recovery around 1.3140/50, a break of which could escalate the run-up towards 61.8% Fibonacci retracement level of 1.3200.
If at all the bulls manage to keep the sentiment intact beyond 1.3200, a 200-day SMA level of 1.3240 could return to the charts.
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.