USD/CAD Price Analysis: 200-DMA remains a tough nut to crack for the bulls

USD/CAD loses bullish traction amid firmer WTI prices, USD pullback.
USD/CAD’s upswing above 21-DMA falters at the 200-DMA.
Daily RSI wavers at 50.00, impending bear cross threatens the upside.

Dhwani Mehta FXStreet

USD/CAD is trading modestly flat around mid-1.2400s in Monday’s early trades, having finished Friday almost unchanged.

The upside in the major faltered in the second half of the previous week after WTI prices resumed their uptrend while the US dollar lost its footing after Fed’s patient stance.

Heading into a fresh week, investors digest the latest comments from the Bank of Canada (BOC) Governor Macklem on inflation, as the focus shifts towards Fed Chair Jerome Powell’s appearances and the US Consumer Price Index (CPI) data due later this week.

Looking at USD/CAD’s daily chart, the pair is looking for a fresh directional impetus after forming a Doji candlestick on Friday.

The renewed upswing triggered in the major on acceptance above the 21-Daily Moving Average (DMA) near 1.2395 ran into strong offers at the horizontal 200-DMA at 1.2477.

For the bulls to regain control, the pair needs to find a strong foothold above the latter. The next bullish target is then envisioned at the 1.2500 level.

USD/CAD: Daily chart

The Relative Strength Index (RSI) trades at the 50.00 level, pointing to a lack of clear directional bias for now.

Meanwhile, the 50-DMA is set to cut the 100-DMA from above, which if occurs will confirm a bear cross on the said timeframe, triggering a fresh downswing in the major.

Sellers will then look to retest the 21-DMA, the resistance-turned-support, below which the downside will open up towards 1.2300.

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.2453
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.2456

Trends
Daily SMA20	1.2393
Daily SMA50	1.2547
Daily SMA100	1.2534
Daily SMA200	1.2481

Levels
Previous Daily High	1.248
Previous Daily Low	1.2436
Previous Weekly High	1.248
Previous Weekly Low	1.2352
Previous Monthly High	1.2739
Previous Monthly Low	1.2288
Daily Fibonacci 38.2%	1.2453
Daily Fibonacci 61.8%	1.2463
Daily Pivot Point S1	1.2435
Daily Pivot Point S2	1.2414
Daily Pivot Point S3	1.2392
Daily Pivot Point R1	1.2479
Daily Pivot Point R2	1.2501
Daily Pivot Point R3	1.2522

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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