USD/CAD Price Analysis: Bulls take a breather around 1.2510 ahead of BOC

USD/CAD trims early Asian losses to regain the 1.2500 threshold.
Weekly horizontal resistance probes short-term buyers inside monthly rising channel.
One-week-old support line, 100-SMA act as immediate downside filters.
Bullish MACD also favors buyers, BOC can extend tapering to test the upside.

Anil Panchal FXStreet

USD/CAD pares early Asian losses, the first in the week, picking up bids to 1.2510 ahead of Wednesday’s European session. In doing so, the Loonie pair again aims for a short-term horizontal resistance inside a one-month-long rising channel bullish formation.

Given the bullish MACD and already priced in BOC’s extended tapering the pair prices may remain firmer following the central bank announcements.

In case of surprises, a nearby support line, close to 1.2470 and 100-SMA near 1.2445 may entertain intraday sellers. However, any further weakness will be probed by the stated channel’s lower line surrounding 1.2380.

If at all the USD/CAD bears take controls past 1.2380, late June’s swing low near 1.2250 should return to the charts.

Alternatively, an upside break of the nearby hurdle of 1.2520-25 will propel the quote towards the channel’s resistance line near 1.2620.

During the rise, the monthly high near 1.2590 and the 1.2600 may offer intermediate halts whereas the USD/CAD bulls can aim for April’s top of 1.2654 on crossing the channel’s upper line.

USD/CAD: Four-hour chart

Trend: Bullish

Additional important levels

Overview
Today last price	1.2509
Today Daily Change	-0.0005
Today Daily Change %	-0.04%
Today daily open	1.2514

Trends
Daily SMA20	1.239
Daily SMA50	1.222
Daily SMA100	1.2375
Daily SMA200	1.2636

Levels
Previous Daily High	1.254
Previous Daily Low	1.2442
Previous Weekly High	1.259
Previous Weekly Low	1.2303
Previous Monthly High	1.2487
Previous Monthly Low	1.2007
Daily Fibonacci 38.2%	1.2503
Daily Fibonacci 61.8%	1.248
Daily Pivot Point S1	1.2458
Daily Pivot Point S2	1.2401
Daily Pivot Point S3	1.236
Daily Pivot Point R1	1.2555
Daily Pivot Point R2	1.2596
Daily Pivot Point R3	1.2652

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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