USD/CAD Price Analysis: Eases inside fortnight-long bearish channel, eyes on 100-SMA

USD/CAD snaps two-day uptrend, justifies bearish candlestick formation.
Downbeat Momentum line, short-term bearish chart pattern also keeps sellers hopeful.
100-SMA, channel’s support lure bears, bulls need validation from January’s top.

Anil Panchal FXStreet

USD/CAD consolidates recent gains inside a bearish channel formation, stepping back from the resistance line to 1.2730 during Monday’s Asian session.

In doing so, the Loonie pair justifies the late Friday’s ‘Hanging man’ candlestick, as well as the Momentum line’s retreat, to register daily losses for the first time in three.

With this, USD/CAD prices are likely to extend the latest pullback towards the 100-SMA level near 1.2680.

However, the lower line of the stated two-week-old descending trend channel, near 1.2630, will restrict the pair’s further weakness, if not then the late January’s swing low around 1.2560 should return to the charts.

On the flip side, the channel’s resistance line near 1.2750 and late January’s peak around 1.2800 will restrict short-term upside moves of the USD/CAD pair.

Following that, the last monthly top near 1.2815 will be the key as a break of which will direct USD/CAD bulls towards the 1.3000 psychological magnet.

USD/CAD: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2729
Today Daily Change	-0.0016
Today Daily Change %	-0.13%
Today daily open	1.2745

Trends
Daily SMA20	1.2656
Daily SMA50	1.2707
Daily SMA100	1.2623
Daily SMA200	1.2527

Levels
Previous Daily High	1.2754
Previous Daily Low	1.2669
Previous Weekly High	1.2756
Previous Weekly Low	1.2636
Previous Monthly High	1.2814
Previous Monthly Low	1.2451
Daily Fibonacci 38.2%	1.2722
Daily Fibonacci 61.8%	1.2701
Daily Pivot Point S1	1.2691
Daily Pivot Point S2	1.2638
Daily Pivot Point S3	1.2607
Daily Pivot Point R1	1.2776
Daily Pivot Point R2	1.2807
Daily Pivot Point R3	1.2861

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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