USD/CAD Price Analysis: Eyes 50-HMA on the road to recovery

USD/CAD rebounds from multi-year lows, regains 1.2650.
The bulls recaptured 21-HMA, with eyes on 50-HMA barrier.
RSI on hourly chart peeps into the bullish territory.

Dhwani Mehta FXStreet

USD/CAD extends its recovery from the lowest levels since April 2018 reached at 1.2625 on Thursday.

The bulls are rescued by the rebound in the US dollar across the board, as investors resort to the safety bet amid anxiousness over President-elect Joe Biden’s $1.9 trillion stimulus plan, weak US jobs data and resurfacing covid fears.

Further, the 1% drop in WTI prices is also underpinning the recovery in the CAD pair.

Looking at it technically, the price has recaptured the 21-hourly moving average (HMA) and looks north towards the bearish 50-HMA resistance at 1.2684.

The move higher is backed by the Relative Strength Index (RSI), which has pierced above the midline, currently trading at 52.62.

The next hurdle is seen at 1.2710, which is the horizontal 200-HMA.

The 21-HMA at 1.2660 could limit any pullbacks, below which the psychological 1.2650 support would come into the picture.

The multi-year troughs at 1.2625 would be the final resort for the bulls.

USD/CAD: Hourly chart

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.2666
Today Daily Change	0.0028
Today Daily Change %	0.22
Today daily open	1.2637

Trends
Daily SMA20	1.2766
Daily SMA50	1.2872
Daily SMA100	1.3039
Daily SMA200	1.3341

Levels
Previous Daily High	1.2708
Previous Daily Low	1.2625
Previous Weekly High	1.2798
Previous Weekly Low	1.263
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2657
Daily Fibonacci 61.8%	1.2677
Daily Pivot Point S1	1.2605
Daily Pivot Point S2	1.2573
Daily Pivot Point S3	1.2522
Daily Pivot Point R1	1.2689
Daily Pivot Point R2	1.274
Daily Pivot Point R3	1.2772

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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