USD/CAD Price Analysis: Corrective pullback seeks validation from 1.2800
- USD/CAD prints mild gains as it consolidates the biggest daily fall in two-months.
- Six-week-old support line, 200-DMA challenged bears but 100-DMA guards recovery moves.
- Sluggish MACD, RSI (14) fail to support recovery moves from the lowest levels since early June.
USD/CAD grinds higher around the daily top as it pares the biggest daily slump since June near 1.2790 during early Thursday morning in Europe.
In doing so, the Loonie pair extends the previous day’s rebound from the convergence of the 200-DMA and a downward sloping support line from late June, around 1.2745-50. However, the 100-DMA challenges the quote’s immediate upside near the 1.2800 threshold.
It’s worth noting that the sluggish RSI and MACD fail to entertain the USD/CAD pair’s latest corrective pullback as it bounces off a two-month low.
Even if the quote crosses the 1.2800 immediate resistance, the monthly peak of 1.2985 and the 1.3000 round figure could challenge the buyers.
On the contrary, pullback remains elusive until the USD/CAD prices remain beyond 1.2745-50 support confluence.
Following that, the 61.8% Fibonacci retracement of April-July upside, near 1.2715, can entertain the pair sellers.
It’s worth noting, however, that the USD/CAD weakness past 1.2745 could drag it to the upward sloping support line from April 05, close to 1.2630 by the press time.
USD/CAD: Daily chart
Trend: Further weakness expected
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.
