USD/CAD Price Analysis: Fades bounce off 50/100-SMA around 1.2850

USD/CAD picks up bids to consolidate Tuesday’s losses amid sluggish session.
Impending bear cross on MACD keeps sellers hopeful.
Four-day-old support line adds to the downside filter.

Anil Panchal FXStreet

USD/CAD struggles to defend the corrective pullback from the key moving averages as the quote retreats to 1.2850 during early Wednesday morning in Europe.

In doing so, the Loonie pair drops back to the upward sloping support line from August 12 as the MACD teases sellers.

Considering the quote’s failure to keep the bounce off the 100-SMA and 50-SMA, as well as the bearish MACD signals, the USD/CAD prices are likely to remain soft.

However, a clear downside break of the stated support line and the SMA confluence, around 1.2845-40, becomes necessary for the pair bears to retake control.

Following that, a slump towards the 23.6% Fibonacci retracement level of August 05-11, near 1.2790, can’t be ruled out.

Meanwhile, recovery moves need to cross the 61.8% Fibonacci retracement level of 1.2890 to convince buyers.

Even so, a downward sloping resistance line from August 05, close to 1.2920, could act as the last defense of the USD/CAD bears.

Overall, USD/CAD is likely to remain sidelined, weak for the short-term, as traders await the key Fed Minutes.

USD/CAD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2849
Today Daily Change	0.0004
Today Daily Change %	0.03%
Today daily open	1.2845

Trends
Daily SMA20	1.2851
Daily SMA50	1.2895
Daily SMA100	1.2806
Daily SMA200	1.275

Levels
Previous Daily High	1.2929
Previous Daily Low	1.2831
Previous Weekly High	1.295
Previous Weekly Low	1.2728
Previous Monthly High	1.3224
Previous Monthly Low	1.2789
Daily Fibonacci 38.2%	1.2868
Daily Fibonacci 61.8%	1.2891
Daily Pivot Point S1	1.2808
Daily Pivot Point S2	1.2771
Daily Pivot Point S3	1.271
Daily Pivot Point R1	1.2906
Daily Pivot Point R2	1.2966
Daily Pivot Point R3	1.3003

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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