USD/CAD Price Analysis: Extends bounce off 50-SMA to poke 1.2980 weekly resistance

USD/CAD picks up bids to refresh intraday high, keeps the previous day’s rebound.
Bearish MACD signals, short-term horizontal resistance challenge buyers.
One-week-old support line also restricts immediate downside before the mid-month low.

Anil Panchal FXStreet

USD/CAD stays on the front foot for the second consecutive day, refreshing intraday high around 1.2970 during Thursday’s Asian session.

In doing so, the Loonie pair extends the previous day’s rebound from the 50-SMA towards a one-week-old descending resistance line.

However, a horizontal area comprising multiple levels marked since the previous Wednesday joins the bearish MACD signals to challenge the pair’s upside around 1.3000 psychological magnet.

Should the quote rises past 1.3000, the double tops around the monthly peak of 1.3078 will be crucial to watch.

Meanwhile, the 50-SMA and a weekly support line restrict immediate pullbacks of the USD/CAD pair, respectively near 1.2940 and 1.2925.

In a case where USD/CAD breaks the 1.2925 support, the bears could aim for the multiple lows marked during mid-June surrounding 1.2860.

It’s worth noting, however, that the pair’s weakness past 1.2860 will make it vulnerable to decline further towards the monthly low of 1.2517.

To sum up, USD/CAD is likely to extend the latest recovery but the upside room is limited.

USD/CAD: Four-hour chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	1.2969
Today Daily Change	0.0023
Today Daily Change %	0.18%
Today daily open	1.2946

Trends
Daily SMA20	1.2767
Daily SMA50	1.2788
Daily SMA100	1.2725
Daily SMA200	1.2675

Levels
Previous Daily High	1.2996
Previous Daily Low	1.2912
Previous Weekly High	1.3079
Previous Weekly Low	1.2774
Previous Monthly High	1.3077
Previous Monthly Low	1.2629
Daily Fibonacci 38.2%	1.2964
Daily Fibonacci 61.8%	1.2944
Daily Pivot Point S1	1.2907
Daily Pivot Point S2	1.2867
Daily Pivot Point S3	1.2822
Daily Pivot Point R1	1.2991
Daily Pivot Point R2	1.3036
Daily Pivot Point R3	1.3076

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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