USD/CAD Price Analysis: Retreats to 1.2350 after facing rejection from three-month-old hurdle
|- USD/CAD snaps three-day uptrend, steps back from seven-week top.
- Overbought RSI, key resistance zone tease counter-trend traders, further losses aim for 1.2265-60.
USD/CAD edges lower around 1.2345, down 0.10% intraday, amid Friday’s Asian session. The Loonie pair jumped to the highest since April 28 the previous day before reversing from 1.2378.
The pullback from the three-month-old resistance area surrounding 1.2365-50 also gains support of overbought RSI to suggest further weakness of the quote.
On its way down, USD/CAD may witness 1.2320 and the 1.2300 threshold as immediate rest-points ahead of highlighting the late April swing lows near 1.2265-60 as important support.
Should the bears keep reins below 1.2260, the odds of witnessing a slump to Tuesday’s top near 1.2200 can’t be ruled out.
Meanwhile, an upside clearance of 1.2365 hurdle will recall the 1.2400 round figure to the chart before directing USD/CAD buyers to April 27 top near 1.2420.
During the pair’s run-up past 1.2420, lows marked during March 19 and April 21 offer a strong resistance around 1.2465-70.
USD/CAD four-hour chart
Trend: Pullback expected
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