USD/CAD Price Analysis: Bears look to October 2018 low on pullback from previous support

USD/CAD renews downside momentum after reversing from 12-day-old resistance line, previous support.
Bearish MACD directs sellers towards 1.5-month-long support line with October 2018 bottom acting as immediate rest-point.
Nine-day-old falling trend line adds to the immediate upside barrier.

Anil Panchal FXStreet

USD/CAD drops to 1.2860 during the early Friday morning in Asia. In doing so, the quote trades near the lowest since October 3, 2018, flashed on Thursday.

The pair recently bounced off the multi-day low of 1.2852 before stepping back from the previous support line stretched since November 18, near 1.2880 now.

Failures to cross the immediate resistance line join bearish MACD to direct USD/CAD sellers towards the October 2018 low near 1.2780 while the 1.2800 round-figure can offer an intermediate halt during the south-run.

It should, however, be noted that the pair’s inability to bounce off 1.2780 will make it vulnerable to drop towards a falling trend line from October 21, currently around 1.2720.

Meanwhile, an upside clearance of the aforementioned immediate resistance line, at 1.2880 now, will trigger a fresh recovery wave targeting another short-term trend line resistance, presently near 1.2950.

USD/CAD four-hour chart

Trend: Bearish

Additional important levels

Overview
Today last price	1.2863
Today Daily Change	-61 pips
Today Daily Change %	-0.47%
Today daily open	1.2924

Trends
Daily SMA20	1.3042
Daily SMA50	1.3157
Daily SMA100	1.321
Daily SMA200	1.3523

Levels
Previous Daily High	1.2959
Previous Daily Low	1.2916
Previous Weekly High	1.3112
Previous Weekly Low	1.2972
Previous Monthly High	1.337
Previous Monthly Low	1.2923
Daily Fibonacci 38.2%	1.2933
Daily Fibonacci 61.8%	1.2943
Daily Pivot Point S1	1.2908
Daily Pivot Point S2	1.2891
Daily Pivot Point S3	1.2865
Daily Pivot Point R1	1.295
Daily Pivot Point R2	1.2976
Daily Pivot Point R3	1.2992

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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