• USD/CAD struggled to capitalize on the overnight bounce and met with a fresh supply on Tuesday.
  • The technical set-up supports prospects for an extension of the recent pullback from a one-year high.
  • Bears, however, might wait for a convincing break below the 1.2600 mark before placing fresh bets.

The USD/CAD pair struggled to capitalize on the previous day's goodish rebound from the vicinity of the 1.2600 mark, or a one-month low and met with a fresh supply on Tuesday. The pair maintained its offered tone through the first half of the European session and was last seen trading just below mid-1.2600s.

From a technical perspective, the USD/CAD pair, so far, has managed to hold its neck above confluence support comprising of 100-day SMA and the 50% Fibonacci level of the 1.2288-1.2964 move up. This is closely followed by the overnight swing low, which if broken will be seen as a fresh trigger for bearish traders.

Given that oscillators on the daily chart have started gaining negative traction, a convincing break below will set the stage for an extension of the recent pullback from a one-year high set in December. The USD/CAD pair might then accelerate the fall to the 1.2540 area (61.8% Fibo.) en-route the key 1.2500 psychological mark.

On the flip side, the overnight swing high, around the 1.2700 mark, which coincides with the 38.2% Fibo. level, now seems to act as an immediate strong barrier. Some follow-through buying might push spot prices towards the 1.2755-60 horizontal resistance, above which bulls could aim to conquer the 1.2800 mark.

The latter also represents the 23.6% Fibo. level hurdle and should act as a key pivotal point for traders. A sustained strength beyond might negate any near-term negative bias and trigger a short-covering move, which might push the USD/CAD pair towards the next relevant hurdle near the 1.2860 horizontal zone.

USD/CAD daily chart

fxsoriginal

Levels to watch

USD/CAD

Overview
Today last price 1.2644
Today Daily Change -0.0030
Today Daily Change % -0.24
Today daily open 1.2674
 
Trends
Daily SMA20 1.2787
Daily SMA50 1.2694
Daily SMA100 1.2628
Daily SMA200 1.2503
 
Levels
Previous Daily High 1.2698
Previous Daily Low 1.261
Previous Weekly High 1.2814
Previous Weekly Low 1.2631
Previous Monthly High 1.2964
Previous Monthly Low 1.2608
Daily Fibonacci 38.2% 1.2664
Daily Fibonacci 61.8% 1.2644
Daily Pivot Point S1 1.2624
Daily Pivot Point S2 1.2573
Daily Pivot Point S3 1.2536
Daily Pivot Point R1 1.2711
Daily Pivot Point R2 1.2748
Daily Pivot Point R3 1.2799

 

 

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