USD/CAD Price Analysis: Bulls battle 13-month-old resistance below 1.2800

USD/CAD retreats from 10-week top, struggles to extend rebound from late October.
Bullish MACD signals, two-week-old ascending trend line favor buyers.
61.8% Fibonacci retracement, tops marked in September, August also challenge buyers.

Anil Panchal FXStreet

USD/CAD bulls take a breather around the highest levels since late September, easing to 1.2780 during the early Asian session on Wednesday.

In doing so, the Loonie pair steps back from a downward sloping trend line stretched from October 2020 amid overbought RSI signals. Adding to the hopes of a pullback are the multiple strong resistances that challenge the quote’s run-up beyond the stated resistance line around 1.2795.

That said, the 1.2800 threshold and 61.8% Fibonacci retracement of September 2020 to June 2021 fall, at 1.2880, offer short-term challenges to the USD/CAD pair’s upside moves.

Even if the quote rises past 1.2880, tops marked during September and August, respectively around 1.2900 and 1.2950, also offer a bumpy road to the north.

Alternatively, pullback moves remain less worrisome until staying beyond a two-week-old support line, close to 1.2690 at the latest. Before that, 50.0% Fibo. level of 1.2710 may offer nearby support.

In a case where the USD/CAD prices drop below 1.2710, April’s high around 1.2655 and the early November’s top near 1.2605 will be in focus.

USD/CAD: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2779
Today Daily Change	0.0025
Today Daily Change %	0.20%
Today daily open	1.2754

Trends
Daily SMA20	1.257
Daily SMA50	1.2533
Daily SMA100	1.2569
Daily SMA200	1.2472

Levels
Previous Daily High	1.2793
Previous Daily Low	1.2721
Previous Weekly High	1.28
Previous Weekly Low	1.2628
Previous Monthly High	1.2739
Previous Monthly Low	1.2288
Daily Fibonacci 38.2%	1.2749
Daily Fibonacci 61.8%	1.2766
Daily Pivot Point S1	1.2719
Daily Pivot Point S2	1.2684
Daily Pivot Point S3	1.2646
Daily Pivot Point R1	1.2791
Daily Pivot Point R2	1.2828
Daily Pivot Point R3	1.2863

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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