USD/CAD Price Analysis: Drops back below 1.2600, HMA confluence in focus


  • USD/CAD consolidates the previous day’s gains around intraday low.
  • Downward sloping RSI line suggests further weakness towards 50, 100-HMA convergence.
  • Weekly rising trend line, descending resistance line from July 19 add to the upside filters.
  • One-week-old horizontal support becomes a tough nut to crack for bears.

USD/CAD extends pullback from 1.2604 to refresh intraday low near 1.2590, down 0.08% on a day, amid Wednesday’s Asian session. The loonie pair rose the most in a week the previous day before taking a U-turn from 1.2604.

Failures to stay beyond the 1.2600 threshold join a descending RSI line to direct the intraday sellers toward a joint of 100-HMA and 50-HMA near 1.2565.

However, a horizontal region comprising multiple lows marked since July 21 restricts the quote’s further weakness around 1.2530-25.

Should USD/CAD bears keep reins past 1.2525, June’s top surrounding 1.2485-90 will be in the spotlight.

Alternatively, an upward sloping resistance line from July 21, around 1.2635, acts as an extra short-term hurdle to the north of the 1.2600 round figure.

Even if the USD/CAD buyers manage to cross the 1.2635 resistance line, a seven-day-old descending trend line near 1.2685 offers an additional challenge for them.

USD/CAD: Hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 1.2592
Today Daily Change -0.0010
Today Daily Change % -0.08%
Today daily open 1.2602
 
Trends
Daily SMA20 1.2518
Daily SMA50 1.2313
Daily SMA100 1.237
Daily SMA200 1.2608
 
Levels
Previous Daily High 1.2605
Previous Daily Low 1.2538
Previous Weekly High 1.2808
Previous Weekly Low 1.2526
Previous Monthly High 1.2487
Previous Monthly Low 1.2007
Daily Fibonacci 38.2% 1.2579
Daily Fibonacci 61.8% 1.2564
Daily Pivot Point S1 1.2559
Daily Pivot Point S2 1.2515
Daily Pivot Point S3 1.2492
Daily Pivot Point R1 1.2625
Daily Pivot Point R2 1.2648
Daily Pivot Point R3 1.2691

 

 

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