USD/CAD Price Analysis: Eases below five-month-old resistance under 1.2500

USD/CAD steps back from two-month top, fades Friday’s trend line breakout below another hurdle.
Key trend line break, bullish MACD favor buyers.
50% Fibonacci retracement, 200-DMA adds to the upside filters.

Anil Panchal FXStreet

USD/CAD consolidates Friday’s heavy gains with a recent decline to 1.2450 amid the initial Asian session on Monday. Even so, the Loonie pair keeps the previous day’s breakout of the key resistance line, now the immediate support, from October 2020.

Given the bullish MACD and the pair’s sustained trading above the previously important resistance, USD/CAD traders may ignore the latest weakness in the prices until the quote stays above the stated trend line around 1.2390.

It’s worth noting that 1.2320 and 1.2270 are extra filters to the pair’s downside below the previous resistance line.

Meanwhile, the fresh upside will aim for a downward sloping trend line from January 28, near 1.2485. However, any further rise needs to cross the 38.2% Fibonacci retracement of September 2020 to June 2021 downside, around 1.2550.

Though, a convergence of 200-day SMA (DMA) and 50% Fibonacci retracement level, close to 1.2705-10, will be a tough nut to crack for the bulls afterward.

Overall, USD/CAD bulls seem tiring of late but the bears need confirmation for fresh entry.

USD/CAD daily chart

Trend: Bullish

Additional important levels

Overview
Today last price	1.2451
Today Daily Change	-13 pips
Today Daily Change %	-0.10%
Today daily open	1.2464

Trends
Daily SMA20	1.2136
Daily SMA50	1.2237
Daily SMA100	1.2429
Daily SMA200	1.2712

Levels
Previous Daily High	1.2481
Previous Daily Low	1.2339
Previous Weekly High	1.2481
Previous Weekly Low	1.2128
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2427
Daily Fibonacci 61.8%	1.2393
Daily Pivot Point S1	1.2375
Daily Pivot Point S2	1.2286
Daily Pivot Point S3	1.2233
Daily Pivot Point R1	1.2516
Daily Pivot Point R2	1.2569
Daily Pivot Point R3	1.2658

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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