USD/CAD Price Analysis: Critical resistance near 1.2560 inside ascending channel

USD/CAD consolidates gains for the last two previous sessions.
Bulls face stiff resistance near the 1.2580-1.2620 zone.
Momentum oscillator trades with a neutral stance adopts the wait-and-watch approach.

Rekha Chauhan Independent Analyst

USD/CAD accumulates gains on Monday in the Asian trading session. The pair opened lower, however, recovered quickly and tested the intraday high of 1.2585.

At the time of writing, USD/CAD is trading at 1.2580, up 0.15% for the day.

USD/CAD daily chart

On the daily chart, the USD/CAD pair has been moving in an upward direction since June 10 from the low of 1.2070, after a long consolidation phase.

If price remains above the lower ascending trendline of the channel, it could further move higher towards the 1.2650 horizontal resistance level.

The Moving Average Convergence Divergence (MACD) indicator holds onto the positive territory with a neutral stance. It signifies that there is plenty of room for the higher price action in the pair.

Next, the USD/CAD bulls would aim to recoup the July 21 high at 1.2730 followed by the high of July 19 at 1.2807.

Alternatively, if price breaks the bullish sloping line, it could fall back to the 1.2530 horizontal support level.

A daily close below the 20-day Simple Moving Average at 1.2509 could mean more weakness in USD/CAD toward the 1.2450 horizontal support level.

The next area of support for the market participant would be the 1.2400 horizontal support level.

USD/CAD additional levels

USD/CAD

Overview
Today last price	1.2583
Today Daily Change	0.0021
Today Daily Change %	0.17
Today daily open	1.2562

Trends
Daily SMA20	1.2497
Daily SMA50	1.2293
Daily SMA100	1.2372
Daily SMA200	1.2614

Levels
Previous Daily High	1.2607
Previous Daily Low	1.2556
Previous Weekly High	1.2808
Previous Weekly Low	1.2526
Previous Monthly High	1.2487
Previous Monthly Low	1.2007
Daily Fibonacci 38.2%	1.2575
Daily Fibonacci 61.8%	1.2588
Daily Pivot Point S1	1.2543
Daily Pivot Point S2	1.2523
Daily Pivot Point S3	1.2491
Daily Pivot Point R1	1.2595
Daily Pivot Point R2	1.2627
Daily Pivot Point R3	1.2646

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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