USD/CAD Price Analysis: Corrective pullback has a bumpy road above 1.2500

USD/CAD eases from intraday high while keeping the bounce off short-term support line.
100, 200-SMA confluence and a falling trend line from March 30 test the bulls.
Monthly bottom adds to the downside filters, extended consolidation more likely.

Anil Panchal FXStreet

USD/CAD steps back from the day’s high of 1.2547 to 1.2541 amid early Wednesday. Even so, the loonie pair keeps its U-turn from an ascending support line from March 19.

Given the absence of extreme RSI conditions, the pair’s latest bounce off the key support is likely to cross 50% Fibonacci retracement level of late February to March 18 downside, around 1.2555.

However, any further rise will have to cross a convergence of 100 and 200-SMA near 1.2575, a break of which should push USD/CAD bulls toward attacking the two-week-old resistance line, around 1.2625.

Meanwhile, a downside break of the 1.2525 support line isn’t an open call to the USD/CAD bears as the monthly low surrounding the 1.2500 threshold should test the quote’s further weakness.

To sum up, USD/CAD is in a consolidation mode inside a symmetrical triangle, which in turn suggests the latest corrective pullback to continue.

USD/CAD four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.2546
Today Daily Change	12 pips
Today Daily Change %	0.10%
Today daily open	1.2534

Trends
Daily SMA20	1.2553
Daily SMA50	1.2609
Daily SMA100	1.2699
Daily SMA200	1.2972

Levels
Previous Daily High	1.263
Previous Daily Low	1.2527
Previous Weekly High	1.2635
Previous Weekly Low	1.2502
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.2566
Daily Fibonacci 61.8%	1.2591
Daily Pivot Point S1	1.2498
Daily Pivot Point S2	1.2461
Daily Pivot Point S3	1.2395
Daily Pivot Point R1	1.26
Daily Pivot Point R2	1.2666
Daily Pivot Point R3	1.2703

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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