USD/CAD Price Analysis: On track to test key resistance around 1.2565
|- USD/CAD rebounds in tandem with the US dollar, recaptures 1.2500.
- Oil price weakness also lends support to the major.
- Daily technical graph points to an extension of the rebound towards key hurdle.
USD/CAD has stalled its two-day bearish momentum, attempting a bounce above 1.2500 in the European session.
The cautious market mood has lifted the US dollar’s safe-haven appeal while the renewed weakness in oil prices also aids the pullback in the major.
The technical setup on the daily chart also appears in favor of the USD/CAD bulls, as traders await the US data sets for fresh trading cues.
USD/CAD is reversing a brief dip below 1.2500, as it looks to extends its rebound towards the critical upside hurdle around 1.2565, where the 21-Daily Moving Average (DMA) coincides with the bearish 200-DMA.
A daily closing above the latter is needed to negate the near-term bearish view. Next of note for the buyers remains the August 10 highs of 1.2589.
The 14-day Relative Strength Index (RSI) is edging slightly higher above the midline, suggesting that the bulls could extend the recovery momentum.
USD/CAD: Daily chart
On the flip side, if the bears take out Wednesday’s low 1.2489, then a fresh drop towards the 1.2450 psychological level cannot be ruled.
The last line of defense for the USD/CAD bulls is aligned at the upward-pointing 50-DMA at 1.2419.
USD/CAD: Additional levels
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