USD/CAD Price Analysis: Bears look to confirm ‘double-top’ formation below 1.2300

USD/CAD fails to extend Friday’s corrective pullback, attacks support line of a bearish chart formation.
Receding bullish bias of MACD, sustained trading below key HMAs favor sellers.

Anil Panchal FXStreet

USD/CAD remains depressed around 1.2275, down 0.14% intraday, amid early Monday. In doing so, the loonie pair rejects Friday’s bounce-off January 2018 low.

Given the recently easing bullish bias of MACD, coupled with the pair’s trading below 50 and 100-HMAs, USD/CAD stays on the bear’s radar. However, a clear break below the recent low of 1.2266 becomes necessary to confirm the bearish chart pattern, namely ‘double top’.

Following that, the theoretical target of 1.2210 and the 1.2200 threshold could lure USD/CAD sellers while the yearly 2018 bottom surrounding 1.2250 can offer an intermediate halt during the fall.

Alternatively, 50-HMA and the double-tops, respectively around 1.229 and 1.2325, guard the pair’s short-term recovery moves.

Also acting as an immediate upside barrier is the 100-HMA level of 1.2340, a break of which will propel USD/CAD prices towards the 1.2400 round figure.

USD/CAD hourly chart

Trend: Bearish

Additional important levels

Overview
Today last price	1.2272
Today Daily Change	-17 pips
Today Daily Change %	-0.14%
Today daily open	1.2289

Trends
Daily SMA20	1.2488
Daily SMA50	1.2542
Daily SMA100	1.2643
Daily SMA200	1.2903

Levels
Previous Daily High	1.2323
Previous Daily Low	1.2266
Previous Weekly High	1.2491
Previous Weekly Low	1.2266
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2301
Daily Fibonacci 61.8%	1.2288
Daily Pivot Point S1	1.2262
Daily Pivot Point S2	1.2236
Daily Pivot Point S3	1.2206
Daily Pivot Point R1	1.2319
Daily Pivot Point R2	1.2349
Daily Pivot Point R3	1.2376

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.

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