USD/CAD Price Analysis: Defends five-month-old trend line break below 1.2500

USD/CAD remains sidelined after confirming the key resistance breakout.
RSI conditions, ascending trend line from May test bulls.
100-DMA adds to downside filters, 1.2650-55 acts as tough nut to crack for buyers.

Anil Panchal FXStreet

USD/CAD stays sidelined around 1.2480, following its sustained break of a crucial resistance, during Thursday’s Asian session. In doing so, the Loonie pair struggles to find direction between the previous resistance line and an upward sloping trend line from May.

Adding to the pair traders’ indecision are the RSI conditions suggesting a pullback move from the immediate hurdle, namely a two-month-old rising trend line near 1.2535.

Even if the quote fails to step back from 1.2535, a convergence of 200-DMA and April’s top near 1.2650-55 will e a tough nut to crack for USD/CAD bulls.

Meanwhile, profit booking moves may bounce off the previous resistance line from February near 1.2430, a break of which could direct the pair towards the 1.2400 round figure.

It should, however, be noted that the USD/CAD weakness below 1.2400 will be tested by a 100-DMA level of 1.2378.

Overall, USD/CAD remains bulls but intermediate corrections can’t be ruled out.

USD/CAD: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2481
Today Daily Change	0.0020
Today Daily Change %	0.16%
Today daily open	1.2461

Trends
Daily SMA20	1.2304
Daily SMA50	1.2201
Daily SMA100	1.2383
Daily SMA200	1.2657

Levels
Previous Daily High	1.2495
Previous Daily Low	1.2303
Previous Weekly High	1.245
Previous Weekly Low	1.2288
Previous Monthly High	1.2487
Previous Monthly Low	1.2007
Daily Fibonacci 38.2%	1.2421
Daily Fibonacci 61.8%	1.2376
Daily Pivot Point S1	1.2344
Daily Pivot Point S2	1.2228
Daily Pivot Point S3	1.2153
Daily Pivot Point R1	1.2536
Daily Pivot Point R2	1.2611
Daily Pivot Point R3	1.2728

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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