• USD/CAD grinds higher after bouncing off three-week-old support line.
  • Bullish MACD, sustained trading beyond horizontal support stretched from August favor buyers.
  • Key Fibonacci retracement levels add to the upside filters, bears have a bumpy road beyond 1.2400.

USD/CAD holds onto the bounce off 1.2490-2500 support confluence around the weekly top of 1.2568 during early Wednesday morning in Asia.

The loonie pair’s rebound from an ascending trend line from October 27, as well as a horizontal area from early August, gains support from the bullish MACD signals to keep the buyers hopeful.

That said, a clear upside break of the 200-DMA level near 1.2570 is on the cards to challenge 50% and 61.8% Fibonacci retracement (Fibo.) levels of August-October downside, respectively near 1.2620 and 1.2700.

However, the 1.2765-70 and September’s peak near the 1.2900 threshold will challenge the pair buyers afterward.

Alternatively, a downside break of the 1.2500-2490 support area won’t offer a green pass to the USD/CAD bears as 23.6% Fibo. level of 1.2443 and multiple tops marked during the latest October can keep challenging the downside before the 1.2400 round figure.

In a case where the quote remains weak past 1.2400, the yearly low of 1.2288 will be in focus.

USD/CAD: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price 1.2563
Today Daily Change 0.0047
Today Daily Change % 0.38%
Today daily open 1.2516
 
Trends
Daily SMA20 1.242
Daily SMA50 1.2538
Daily SMA100 1.2545
Daily SMA200 1.2473
 
Levels
Previous Daily High 1.2556
Previous Daily Low 1.2502
Previous Weekly High 1.2605
Previous Weekly Low 1.2387
Previous Monthly High 1.2739
Previous Monthly Low 1.2288
Daily Fibonacci 38.2% 1.2523
Daily Fibonacci 61.8% 1.2536
Daily Pivot Point S1 1.2493
Daily Pivot Point S2 1.247
Daily Pivot Point S3 1.2438
Daily Pivot Point R1 1.2548
Daily Pivot Point R2 1.2579
Daily Pivot Point R3 1.2602

 

 

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