USD/CAD Price Analysis: Bounces off intraday low as bears struggle to keep 1.2700

USD/CAD stays mildly offered inside a short-term descending triangle.
Normal RSI conditions suggest further weakness, 200-bar SMA adds to the upside barriers.

Anil Panchal FXStreet

USD/CAD remains on the back-foot near the weekly low of 1.2706, currently down 0.18% near 1.2711, during early Wednesday. In doing so, the quote portrays a descending triangle bullish chart pattern while also staying below 200-bar SMA.

Considering the absence of oversold RSI conditions, USD/CAD selling is likely to stretch towards the stated triangle’s support. However, key events like the monetary policy meeting of the Bank of Canada and US President-elect Joe Biden’s inauguration ceremony in the White House, probe the sellers.

Read: Bank of Canada Rate Decision Preview: No change anticipated in interest rate

During the quote’s downside towards the triangle support near 1.2630-25, the 1.2660 level can act as an intermediate halt.

It should additionally be noted that USD/CAD bears’ dominance past-1.2625 will be tested by the 1.2600 round-figure ahead of highlighting the April 2018 low around 1.2525.

Alternatively, an upside break of the triangle should have enough strength to cross 200-bar SMA, currently around 1.2770 to aim for the monthly near 1.2835 and the late-December top close to 1.2960.

In a case where the USD/CAD rallies past-1.2960, the 1.3000 psychological magnet and December 2020 top of 1.3010 will be the key to watch.

USD/CAD four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2713
Today Daily Change	-23 pips
Today Daily Change %	-0.18%
Today daily open	1.2736

Trends
Daily SMA20	1.2749
Daily SMA50	1.2855
Daily SMA100	1.3029
Daily SMA200	1.3323

Levels
Previous Daily High	1.2764
Previous Daily Low	1.2716
Previous Weekly High	1.2836
Previous Weekly Low	1.2625
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2734
Daily Fibonacci 61.8%	1.2746
Daily Pivot Point S1	1.2713
Daily Pivot Point S2	1.269
Daily Pivot Point S3	1.2664
Daily Pivot Point R1	1.2762
Daily Pivot Point R2	1.2787
Daily Pivot Point R3	1.281

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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