USD/CAD Price Analysis: Again eyes weekly resistance line above 1.2800

USD/CAD holds onto latest rebound from 50-HMA, picks up bids of late.
Firmer RSI favor buyers to mark another battle with one-week-old descending trend line.
200-SMA adds to the upside filters, 1.2780 level acts as extra support.

Anil Panchal FXStreet

USD/CAD bounces off 50-HMA to defend the 1.2800 threshold, around 1.2820 during early Wednesday morning in Asia.

The loonie pair crossed the stated HMA the previous day but couldn’t cross a downward sloping resistance line from December 20.

Even so, a firmer RSI line and the quote’s rebound from the immediate moving average keep the buyers hopeful to overcome the 1.2830 hurdle.

Following that, the 200-HMA level of 1.2847 will precede 50% Fibonacci retracement of December 16-20 upside, near 1.2865 to limit short-term advances of USD/CAD.

On the contrary, a downside break of 50-HMA, around 1.2805 at the latest, will aim for the weekly horizontal support zone near 1.2780.

In a case where the USD/CAD sellers keep reins past 1.2780, the mid-month trough surrounding 1.2765 and 1.2715 levels may act as buffers before directing the bears towards the monthly low of 1.2607.

To sum up, USD/CAD prices are likely to recover but the bulls have a bumpy road ahead.

USD/CAD: Hourly chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.2815
Today Daily Change	0.0023
Today Daily Change %	0.18%
Today daily open	1.2792

Trends
Daily SMA20	1.2802
Daily SMA50	1.2621
Daily SMA100	1.2618
Daily SMA200	1.2495

Levels
Previous Daily High	1.2848
Previous Daily Low	1.2779
Previous Weekly High	1.2964
Previous Weekly Low	1.2786
Previous Monthly High	1.2837
Previous Monthly Low	1.2352
Daily Fibonacci 38.2%	1.2805
Daily Fibonacci 61.8%	1.2822
Daily Pivot Point S1	1.2765
Daily Pivot Point S2	1.2738
Daily Pivot Point S3	1.2696
Daily Pivot Point R1	1.2833
Daily Pivot Point R2	1.2875
Daily Pivot Point R3	1.2902

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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