USD/CAD Price Analysis: Bears challenge 50-day SMA at 1.2085

USD/CAD print losses in the Asian session on Friday.
Bulls lose the battle near the 1.2100 mark.
Negative MACD favors downside momentum.

Rekha Chauhan Independent Analyst

The USD/CAD pair extends the previous day’s weakness onto Friday’s morning session. The pair opens up near the 1.2100, a key psychological mark, albeit fizzles out rather quickly towards the lower levels.

At the time of writing, USD/CAD trades at 1.2090, down 0.03% so far.

USD/CAD 4-hour chart

On the 4-hour chart, the USD/CAD pair has been facing a strong resistance barrier near 1.2120 with the double top formation. USD/CAD is making a higher low pattern, where highs remain almost the same. The price is squeezing out as soon as it approaches toward the higher end.

The negative divergence in the Moving Average Convergence Divergence (MACD) indicator signifies impending selling movement. If the MACD slips below the midline, then USD bears could have the opportunity to test the 50-hour Simple Moving Average (SMA) at 1.2085.

In doing so, bears would be next aiming for the target of the 1.2070 and the 1.2050 horizontal support levels.

Alternatively, if price moves higher, then it could first claim back at the 1.2110 horizontal resistance level.

Next, market participants would like to recapture the June 4 high in the vicinity of the 1.2135 area. The bulls feel motivated to march toward the May 27 high near the 1.2145 neighbourhood.

USD/CAD additional levels

USD/CAD

Overview
Today last price	1.209
Today Daily Change	-0.0006
Today Daily Change %	-0.05
Today daily open	1.2096

Trends
Daily SMA20	1.2082
Daily SMA50	1.2272
Daily SMA100	1.2458
Daily SMA200	1.2739

Levels
Previous Daily High	1.2125
Previous Daily Low	1.207
Previous Weekly High	1.2133
Previous Weekly Low	1.2007
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2091
Daily Fibonacci 61.8%	1.2104
Daily Pivot Point S1	1.2069
Daily Pivot Point S2	1.2042
Daily Pivot Point S3	1.2014
Daily Pivot Point R1	1.2124
Daily Pivot Point R2	1.2152
Daily Pivot Point R3	1.218

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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