USD/CAD Price Analysis: Sellers attack 200-SMA after breaking three-week-old support
|- USD/CAD keeps break of short-term support during four-day downtrend.
- Key SMA challenges further downside amid nearly oversold RSI.
- Recovery moves will have multiple hurdles before reaching 1.2900 resistance.
USD/CAD stays pressured around an intraday low of 1.2641, down 0.08% during the fourth daily fall amid early Friday.
In doing so, the Loonie pair sellers justify the downside break of an ascending support line, now resistance around 1.2705, while jostling with the 200-SMA.
It should be observed that the RSI conditions are nearly oversold and the key SMA support around 1.2645 challenge the pair’s further weakness.
Even if the quote drops below 1.2645, the August-end lows near 1.2570 and the monthly low surrounding 1.2495 will be crucial to follow.
Alternatively, recovery moves beyond the support-turned-resistance around 1.2705 will aim for 50% Fibonacci retracement (Fibo.) of late August to early September declines, near 1.2725.
Should USD/CAD buyers manage to keep the controls past 1.2725, 61.8% Fibo near 1.2775 will be an important hurdle towards the run-up to the monthly peak of 1.2896 and the yearly top surrounding 1.2950.
USD/CAD: Four-hour chart
Trend: Corrective pullback expected
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