USD/CAD Price Analysis: Battles key HMA confluence below short-term resistance line


  • USD/CAD trims early day gains towards revisiting the 100, 200-HMA confluence.
  • Sustained trading above key Fibonacci retracements, MACD conditions favor recovery moves.
  • Weekly resistance line holds the key to welcome buyers.

USD/CAD fades bounce off weekly lows while easing to 1.2630 during Wednesday’s Asian session. In doing so, the quote fizzles the early Asia recovery moves but stays above the key HMA confluence as the MACD teases bulls.

Even if the HMA confluence around 1.2620 fails to stop the latest selling pressure, 50% and 61.8% Fibonacci retracement levels of the USD/CAD upside during late last week, respectively around 1.2600 and 1.2570, will be challenging the bears.

In a case where USD/CAD sellers dominate past-1.2570, odds of its drop to the multi-month low marked last week, near 1.2470 can’t be ruled out.

Meanwhile, buyers will look for a clear break of a downward sloping trend line from Monday, currently, around 1.2680, to recall the bullish bets.

Following that, the latest swing high around 1.2740 and the previous month’s peak surrounding 1.2870 should return to the charts

USD/CAD hourly chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price 1.2631
Today Daily Change 10 pips
Today Daily Change % 0.08%
Today daily open 1.2621
 
Trends
Daily SMA20 1.2678
Daily SMA50 1.2721
Daily SMA100 1.2871
Daily SMA200 1.3124
 
Levels
Previous Daily High 1.2698
Previous Daily Low 1.26
Previous Weekly High 1.273
Previous Weekly Low 1.2468
Previous Monthly High 1.287
Previous Monthly Low 1.2468
Daily Fibonacci 38.2% 1.2638
Daily Fibonacci 61.8% 1.2661
Daily Pivot Point S1 1.2582
Daily Pivot Point S2 1.2542
Daily Pivot Point S3 1.2484
Daily Pivot Point R1 1.268
Daily Pivot Point R2 1.2738
Daily Pivot Point R3 1.2777

 

 

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