USD/CAD Price Analysis: Facing resistance to near 50% Fibo retracement at 1.2650

Loonie bulls are firmly defending the 50% Fibo retracement at 12652.
The RSI (14) is expected to face resistance at 60.00.
The greenback bulls are still hopeful amid ascending 21- and 50-period EMAs.

Sagar Dua FXStreet

The USD/CAD pair witnessed a bullish open-drive session on early Monday amid strength in the US dollar index (DXY). Right from the first opening tick at 1.2615, the asset is scaling higher and has made an intraday high of 1.2643.

On a four-hour scale, loonie bulls are defending the 50% Fibonacci retracement (placed from March’s high at 1.2900 to April’s low at 1.2403) at 1.2652. The pair has developed a supply area near the 50% Fibo retracement in a narrow range of 1.2643-1.2676 due to multiple failed attempts of establishment above the 1.2650.

The 21- and 50-period Exponential Moving Averages (EMAs) at 1.2610 and 1.2593 respectively are scaling higher, which signals more gains ahead.

Meanwhile, the Relative Strength Index (RSI) (14) is facing resistance near 60.00 levels, which signals a bearish reversal. However, overstepping the 60.00 will infuse fresh blood in the greenback bulls.

Going forward, greenback bulls may take the charge if the asset overstep Wednesday’s high at 1.2676, which will send the asset towards March 17 high at 1.2699. A breach of the March 17 high will drive the asset towards the March 16 high at 1.2778.

On the contrary, a drop below March’s last traded price at 1.2503 will drag the asset towards January’s low at 1.2451, followed by the round level support of 1.2400.

USD/CAD four-hour chart

USD/CAD

Overview
Today last price	1.2639
Today Daily Change	0.0024
Today Daily Change %	0.19
Today daily open	1.2615

Trends
Daily SMA20	1.2549
Daily SMA50	1.2657
Daily SMA100	1.2687
Daily SMA200	1.2626

Levels
Previous Daily High	1.2621
Previous Daily Low	1.259
Previous Weekly High	1.2676
Previous Weekly Low	1.2521
Previous Monthly High	1.2901
Previous Monthly Low	1.243
Daily Fibonacci 38.2%	1.2609
Daily Fibonacci 61.8%	1.2602
Daily Pivot Point S1	1.2596
Daily Pivot Point S2	1.2578
Daily Pivot Point S3	1.2565
Daily Pivot Point R1	1.2628
Daily Pivot Point R2	1.264
Daily Pivot Point R3	1.2659

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD pops to daily highs near 1.1430

EUR/USD starts the week on a positive note, climbing to as high as the 1.1430 zone, or daily tops, on Monday. The pair’s recovery comes in response to the broad-based US Dollar weakness, while investors continue to monitor developments from the Middle East ahead of the beginning of the ECB's annual forum.

Gold struggles to attract investors

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.