USD/CAD Price Analysis: Bears eyeing a test of critical support at 1.2950

USD/CAD looks vulnerable amid dollar weakness.
Further declines could challenge the key support near 1.2950.
A bounce in the near-term cannot be ruled out.

Dhwani Mehta FXStreet

USD/CAD extends its six-day losing streak and breaches the 1.3000 level, as the bears look to test the critical support near 1.2950 amid relentless selling seen in the US dollar across the board.

The slide in the major can be partially attributed to the ongoing rally in WTI, backed by upbeat Chinese Manufacturing PMIs, weaker dollar and expectations of a draw in the US crude stockpiles. At the press time, WTI trades at $43.10, up 1.15% on the day.

From a near-term technical perspective, the downtrend in the spot is likely to challenge the bulls’ commitment at the horizontal trendline support (maroon line) seen from December 2019 low, which is near 1.2950.

A daily closing below the latter will validate the rounding top formation, paving way for an extensive sell-off.

Ahead of that, a pullback cannot be ruled since the daily Relative Strength Index (RSI) lies in the oversold territory.

Recapturing the bearish 21-daily Simple Moving Average (DMA) at 1.3210 will be critical to extend the recovery momentum.

USD/CAD: Daily chart

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.2999
Today Daily Change	-0.0042
Today Daily Change %	-0.32
Today daily open	1.3048

Trends
Daily SMA20	1.3221
Daily SMA50	1.3403
Daily SMA100	1.3626
Daily SMA200	1.3527

Levels
Previous Daily High	1.3104
Previous Daily Low	1.302
Previous Weekly High	1.324
Previous Weekly Low	1.3048
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3053
Daily Fibonacci 61.8%	1.3072
Daily Pivot Point S1	1.301
Daily Pivot Point S2	1.2974
Daily Pivot Point S3	1.2926
Daily Pivot Point R1	1.3094
Daily Pivot Point R2	1.3142
Daily Pivot Point R3	1.3178

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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