USD/CAD Price Analysis: Drops back to 21-day SMA above 1.2700

USD/CAD fails to stretch Friday’s run-up below a five-week-old key resistance line.
Normal RSI conditions, inability to stay beyond 1.2700 keeps bears hopeful.
50-day SMA adds to the upside filters, monthly low lures bears.

Anil Panchal FXStreet

USD/CAD takes offers around 1.2718 in a fresh downside during the early Asian session on Monday. In doing so, the loonie pair trims Friday’s gains as sellers attack 21-day SMA.

Considering the pair’s repeated failures to stay strong beyond the 1.2700, coupled with the normal RSI conditions, USD/CAD sellers are likely to return.

However, a clear downside break of 21-day SMA, currently around 1.2715, needs validation from the 1.2700 threshold to recall the USD/CAD bears.

Following that, 1.2630 can offer an intermediate halt during the fall to the multi-month low marked the last week around 1.2590.

Alternatively, a downward sloping trend line from December 21, at 1.2747 now, guards the quote’s immediate upside, a break of which will enable the USD/CAD buyers to attack the 50-day SMA level of 1.2813.

Also acting as the upside barriers is the monthly high of 1.2835 and the late-December peak surrounding 1.2960.

USD/CAD daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2724
Today Daily Change	-2 pips
Today Daily Change %	-0.02%
Today daily open	1.2726

Trends
Daily SMA20	1.2721
Daily SMA50	1.2828
Daily SMA100	1.3016
Daily SMA200	1.3302

Levels
Previous Daily High	1.2741
Previous Daily Low	1.2629
Previous Weekly High	1.2799
Previous Weekly Low	1.259
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2698
Daily Fibonacci 61.8%	1.2672
Daily Pivot Point S1	1.2656
Daily Pivot Point S2	1.2586
Daily Pivot Point S3	1.2544
Daily Pivot Point R1	1.2768
Daily Pivot Point R2	1.2811
Daily Pivot Point R3	1.288

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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