USD/CAD Price Analysis: Downside appears limited amid a bull cross

USD/CAD consolidates Monday’s pullback from a two-month top.
The corrective decline appears limited after a bull cross confirmed on the 1D chart.
Daily RSI edges lower but remains well above the midline.

Dhwani Mehta FXStreet

USD/CAD is posting small losses while trading below 1.2750, as the sellers take a breather after a solid rebound in the US dollar and WTI prices seen on Monday.

The latest drop in the major could be attributed to the renewed weakness in the US dollar across the board, as the markets remain optimistic about the less severe effects of the Omicron covid variant.

Investors look forward to Fed Chair Jerome Powell’s testimony on the CARES Act later on Tuesday, especially after his prepared remarks underscored risks to the economy from the new covid strain.

Also, in focus remains the Canadian GDP data for fresh trading impetus amid ongoing OPEC+ headlines.

Looking at USD/CAD’s daily chart, the bulls are fighting to regain lost ground, looking to take advantage of the bull cross confirmed earlier this Tuesday.

The 14-day Relative Strength Index (RSI) is slightly lower but holds comfortably above the midline, suggesting that buying resurgence could be in the offing.

Bulls will need to cross the daily highs of 1.2766 to seek additional recovery towards the 1.2800 level.

USD/CAD: Daily chart

On the downside, Monday’s low of 1.2721 will offer immediate support to the bullish traders, below which a drop towards the 1.2650 psychological level cannot be ruled out, where Friday’s low coincides.

Further south, bears will challenge the bullish commitments at the 1.2600 mark.

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.2737
Today Daily Change	-0.0017
Today Daily Change %	-0.13
Today daily open	1.2754

Trends
Daily SMA20	1.257
Daily SMA50	1.2533
Daily SMA100	1.2569
Daily SMA200	1.2472

Levels
Previous Daily High	1.2793
Previous Daily Low	1.2721
Previous Weekly High	1.28
Previous Weekly Low	1.2628
Previous Monthly High	1.2739
Previous Monthly Low	1.2288
Daily Fibonacci 38.2%	1.2749
Daily Fibonacci 61.8%	1.2766
Daily Pivot Point S1	1.2719
Daily Pivot Point S2	1.2684
Daily Pivot Point S3	1.2646
Daily Pivot Point R1	1.2791
Daily Pivot Point R2	1.2828
Daily Pivot Point R3	1.2863

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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