USD/CAD Price Analysis: 50-DMA probes recovery moves near 1.2700

USD/CAD struggles to extend recovery moves from fortnight-long horizontal support.
Bullish MACD signals keep buyers hopeful to poke the monthly resistance line.
Convergence of 100-DMA, 50% Fibonacci retracement offers strong support.

Anil Panchal FXStreet

USD/CAD buyers flirt with a short-term key hurdle surrounding 1.2700 during Wednesday’s Asian session, following the bounce off a two-week-old horizontal support zone.

A convergence of the 50-DMA and 38.2% Fibonacci retracement (Fibo.) of October-December 2021 upside challenges the USD/CAD pair’s immediate upside around 1.2710.

However, bullish MACD signals and the Loonie pair’s ability to stay beyond 1.2655-50 horizontal area for nearly two weeks keep the buyers hopeful to overcome the immediate hurdle.

Following that, a downward sloping trend line from early January, near 1.2785, will be in focus as a break which will direct USD/CAD bulls towards crossing the 1.2800 threshold.

Meanwhile, a downside break of the 1.2650 support will again highlight the 1.2625-20 support confluence, comprising the 100-DMA and 50% Fibo.

Should the quote’s drop below 1.2620, the mid-January’s swing high near 1.2570 may offer an intermediate halt during the fall targeting the yearly low of 1.2453.

USD/CAD: Daily chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.2704
Today Daily Change	0.0034
Today Daily Change %	0.27%
Today daily open	1.267

Trends
Daily SMA20	1.2622
Daily SMA50	1.2715
Daily SMA100	1.2624
Daily SMA200	1.2517

Levels
Previous Daily High	1.2756
Previous Daily Low	1.2658
Previous Weekly High	1.2788
Previous Weekly Low	1.265
Previous Monthly High	1.2814
Previous Monthly Low	1.2451
Daily Fibonacci 38.2%	1.2696
Daily Fibonacci 61.8%	1.2719
Daily Pivot Point S1	1.2633
Daily Pivot Point S2	1.2596
Daily Pivot Point S3	1.2535
Daily Pivot Point R1	1.2732
Daily Pivot Point R2	1.2793
Daily Pivot Point R3	1.283

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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