USD/CAD Price Analysis: Bears need acceptance below 1.2420 to keep reins

  • USD/CAD retreats towards monthly low, fades Friday bounce off.
  • 200-SMA, five-week-old support line and one-month-old horizontal area challenge bears.
  • Bulls require sustained break of a resistance line from July 19 to retake controls.
  • Bearish RSI line suggests, failures to rebound signal slower grind to the south.

USD/CAD remains pressured around 1.2475 heading into Monday’s European session. In doing so, the Loonie pair fails to extend Friday’s bounce off the 1.2420 support confluence.

Given the downbeat RSI line and limited capacity to hold 200-SMA, until a descending resistance line from July 19, USD/CAD bears are likely to remain dominant.

However, multiple supports between the said SMA and an upward sloping trend line from June 23, not to forget an area comprising levels marked since June 30, limit the pair’s downside above 1.2420.

Should the quote break the 1.2420 support, its slump to July low near the 1.2300 threshold can’t be ruled out.

Meanwhile, recovery moves need to cross the stated resistance line surrounding 1.2535 to poke the previous week’s top close to 1.2605.

In a case where the USD/CAD remains bullish past 1.2605, 1.2675 may offer an intermediate halt during the run-up to challenge July’s high near 1.2810.

USD/CAD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Today last price 1.2475
Today Daily Change -0.0002
Today Daily Change % -0.02%
Today daily open 1.2477
Daily SMA20 1.2533
Daily SMA50 1.2337
Daily SMA100 1.2369
Daily SMA200 1.2598
Previous Daily High 1.2492
Previous Daily Low 1.2422
Previous Weekly High 1.2605
Previous Weekly Low 1.2422
Previous Monthly High 1.2808
Previous Monthly Low 1.2303
Daily Fibonacci 38.2% 1.2465
Daily Fibonacci 61.8% 1.2449
Daily Pivot Point S1 1.2436
Daily Pivot Point S2 1.2394
Daily Pivot Point S3 1.2367
Daily Pivot Point R1 1.2505
Daily Pivot Point R2 1.2533
Daily Pivot Point R3 1.2574



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Bullish hourly divergence, 38.2% ratio eyed

EUR/USD has stalled and is steady in the open. The bears have been in control to this point after breaking back below the 200-hour EMA.


GBP/USD a critical watch on BoE and Fed week

It is a critical week for GBP/USD traders as we have both the Bank of England and the Federal Reserve central bank meetings. At the time of writing, GBP/USD is moving sideways in a consolidated market, hugging a bullish 200 EMA channel, albeit pressured by a firm US dollar as investors survey the conditions of the market's risk profile. 


Gold: Steady as she goes on Fed week

Gold is flat during holiday thin markets with both Tokyo and China out today. Gold vs the US dollar has traded in a narrow range between $1,751.27 low and a $1,755.29 high.  

Gold News

Bitcoin might be safe from a global stock market crisis

BTC’s lack of integration with traditional finance and its inability to be forcefully sold to cover financial losses mean the price might not ‘collapse’ if there is a global stock market meltdown.

Read more

Evergrande: Risk-off tone for APAC, a USD win-win scenario, bad for AUD

The open could be in for a risk-off ride to start the week due to China's embattled developer, Evergrande, being on the brink of default. The potential fallout of Evergrande could have contagion implications that spill outside China’s financial market borders.

Read more