USD/CAD Price Analysis: Bears attack six-week-old support line near 1.2750
- USD/CAD takes offers to refresh intraday low, prints three-day downtrend at two-month bottom.
- Oversold RSI conditions, short-term key support line challenge bears.
- Recovery remains elusive until staying below 61.8% Fibonacci retracement level.
USD/CAD bears keep reins for the third consecutive day around the lowest levels since June 10. That said, the Loonie pair refreshes its intraday low near 1.2745 heading into Friday’s European session.
With this, the quote pokes a 1.5-month-old downward sloping support line, around 1.2750-45 by the press time.
However, the receding bearish bias of MACD and the oversold RSI conditions challenge the sellers’ further dominance.
Also acting as a downside filter is the latest bottom surrounding 1.2730-25 and the 1.2700 threshold.
In a case where USD/CAD prices remain bearish past 1.2700, the 78.6% Fibonacci retracement level of June-July upside, near 1.2665, should return to the charts.
Meanwhile, recovery moves need to cross the 61.8% Fibonacci retracement, around 1.2790, as well as the 1.2800 round figure to convince buyers.
Even so, the upside momentum remains doubtful until the quote stays firmer above the 200-SMA, surrounding 1.2910 at the latest.
Overall, USD/CAD remains on the bear’s radar but the immediate downside appears limited.
USD/CAD: Four-hour chart
Trend: Corrective pullback expected
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.
