USD/CAD Price Analysis: Bulls take a breather below 1.2810-15 key hurdle


  • USD/CAD grinds higher after refreshing monthly peak during early Asia.
  • Three-week-old resistance line, a horizontal area from July challenge further upside.
  • Overbought RSI conditions suggest a pullback but fortnight-long support line, 200-SMA restrict bear’s entry.
  • Canadian Federal Elections: A not very crucial vote

USD/CAD retreats from the monthly high to 1.2760 amid Monday’s Asian session. In doing so, the Loonie pair justifies overbought RSI conditions staying above the short-term support line and 200-SMA.

Hence, a pullback towards 16-day-old horizontal support near 1.2710 can’t be ruled out before directing the quote to an ascending support line from September 03, around 1.2645 by the press time.

Even so, a 200-SMA level surrounding 1.2620 and the 1.2600 threshold will question the USD/CAD bears afterward.

Alternatively, a convergence of a horizontal area established since late July and an ascending resistance line from August 27, around 1.2810-15, will be a strong resistance for the pair buyers to watch during the further upside.

In a case where the USD/CAD bulls keep reins past 1.2815, the yearly peak close to 1.2950 and the 1.3000 psychological magnet will be in focus.

Overall, USD/CAD remains in the uptrend but profit booking moves on the key Canada election day can’t be ruled out.

USD/CAD: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 1.2761
Today Daily Change -0.0002
Today Daily Change % -0.02%
Today daily open 1.2763
 
Trends
Daily SMA20 1.2636
Daily SMA50 1.2598
Daily SMA100 1.2405
Daily SMA200 1.2524
 
Levels
Previous Daily High 1.2774
Previous Daily Low 1.2637
Previous Weekly High 1.2774
Previous Weekly Low 1.2601
Previous Monthly High 1.2949
Previous Monthly Low 1.2453
Daily Fibonacci 38.2% 1.2721
Daily Fibonacci 61.8% 1.2689
Daily Pivot Point S1 1.2676
Daily Pivot Point S2 1.2588
Daily Pivot Point S3 1.2539
Daily Pivot Point R1 1.2812
Daily Pivot Point R2 1.2861
Daily Pivot Point R3 1.2949

 

 

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