USD/CAD Price Analysis: Extends pullback from key resistance towards 1.2850

USD/CAD remains on the back foot after reversing from a 10-month-old resistance line.
38.2% Fibonacci retracement lures bears ahead of the 20-DMA support.
Multiple hurdles around 1.3050, May’s peak adds to the upside filters.

Anil Panchal FXStreet

USD/CAD keeps Fed-impressed losses, staying pressured around the intraday low of 1.2862, during Thursday’s Asian session.

The Loonie pair’s latest weakness could be linked to the sustained reversal from an upward sloping resistance line from August 2021. The stated pullback also gains support from the RSI retreat, which in turn solidifies bearish bias.

That said, the quote currently eyes the 38.2% Fibonacci retracement of October 2021 to May 2022 upside, around 1.2775. However, the 1.2800 threshold may offer an intermediate halt.

Should the quote USD/CAD bears keep reins past 1.2775, the 20-DMA support near 1.2730 could challenge the further downside.

Meanwhile, recovery moves need to cross the aforementioned resistance line, at 1.2985 by the press time, to recall the USD/CAD buyers.

Even so, the 1.3000 psychological magnet and multiple levels marked in May near 1.3050 could test the upside momentum before challenging the yearly top of 1.3076.

Overall, the USD/CAD pair’s retreat has a further downside to track but the sellers should not expected the trend reversal.

USD/CAD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.287
Today Daily Change	-0.0021
Today Daily Change %	-0.16%
Today daily open	1.2891

Trends
Daily SMA20	1.2729
Daily SMA50	1.2752
Daily SMA100	1.2713
Daily SMA200	1.2668

Levels
Previous Daily High	1.2996
Previous Daily Low	1.2863
Previous Weekly High	1.2813
Previous Weekly Low	1.2518
Previous Monthly High	1.3077
Previous Monthly Low	1.2629
Daily Fibonacci 38.2%	1.2914
Daily Fibonacci 61.8%	1.2945
Daily Pivot Point S1	1.2838
Daily Pivot Point S2	1.2784
Daily Pivot Point S3	1.2705
Daily Pivot Point R1	1.297
Daily Pivot Point R2	1.3049
Daily Pivot Point R3	1.3103

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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