USD/CAD Price Analysis: Fades bounce off 100-DMA below 1.2900
- USD/CAD retreats from 21-DMA, reverses the previous day’s corrective bounce.
- Sluggish MACD, steady RSI hint at further grind towards the south.
- Monthly resistance line adds to the upside filters, key Fibonacci retracement levels offer extra challenges to bears.
USD/CAD remains pressured around 1.2885 as it steps back from the 21-DMA hurdle during Wednesday’s Asian session. In doing so, the Loonie pair portrays the failure to keep the bounce off the 100-DMA, marked during the last week.
Given the sluggish MACD and the steady RSI supporting the recent grinding towards the south, the USD/CAD Price are likely to remain softer.
However, the 50% Fibonacci retracement level of April-July upside, near 1.2815, could challenge short-term sellers of the Loonie pair before directing them to the 100-DMA re-test, at 1.2795 by the press time.
In case of the USD/CAD remains pressured below 1.2795, the monthly low and the 61.8% Fibonacci retracement, respectively around 1.2767 and 1.2717, might lure the pair bears.
Alternatively, the 21-DMA level near 1.2895 and the 1.2900 threshold guard the quote’s recovery moves.
Following that, the one-month-old descending resistance line, close to 1.2940 at the latest, appears important for the USD/CAD buyers to watch.
If the quote manages to successfully cross the 1.2940 hurdle, the odd of witnessing a run-up towards the 1.3000 round figure and then to the multiple highs marked around 1.3080 since May can’t be ruled out.
USD/CAD: Daily chart
Trend: Pullback expected
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.
