USD/CAD Price Analysis: Further downside below 1.2900 appears on the cards

USD/CAD struggles inside the key DMA envelope after dropping the previous day.
Fortnight-old descending trend line adds to the upside filters, bearish MACD favors further downside.
21-DMA holds the key to seller’s welcome, 10-DMA guards recovery.

Anil Panchal FXStreet

USD/CAD fades bounce off intraday low around 1.2880 during Friday’s Asian session. In doing so, the Loonie pair remains pressured inside the familiar trading range between the 10-DMA and the 21-DMA by the press time.

It’s worth noting that the quote dropped the most in a week while reversing from the confluence of the 10-DMA and a two-week-old resistance line, around 1.2915-20 at the latest.

The pullback also gains support from the bearish MACD signals, which in turn challenge the quote’s corrective bounce afterward.

However, the 21-DMA support of 1.2837 precedes the weekly low near 1.2820 to challenge the short-term downside of the USD/CAD prices.

In a case where the pair stays weak past 1.2820, the odds of witnessing a south-run towards the 50% Fibonacci retracement of April-June upside, near 1.2740, can’t be ruled out.

On the contrary, a clear upside break of the 1.2920 hurdle could propel the USD/CAD pair towards the 1.3000 psychological magnet.

Following that, the double tops surrounding 1.3080 appear tough nut to crack for the bulls.

USD/CAD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2876
Today Daily Change	-0.0017
Today Daily Change %	-0.13%
Today daily open	1.2893

Trends
Daily SMA20	1.2821
Daily SMA50	1.282
Daily SMA100	1.2735
Daily SMA200	1.2678

Levels
Previous Daily High	1.29
Previous Daily Low	1.2844
Previous Weekly High	1.3039
Previous Weekly Low	1.289
Previous Monthly High	1.3077
Previous Monthly Low	1.2629
Daily Fibonacci 38.2%	1.2879
Daily Fibonacci 61.8%	1.2865
Daily Pivot Point S1	1.2858
Daily Pivot Point S2	1.2823
Daily Pivot Point S3	1.2802
Daily Pivot Point R1	1.2914
Daily Pivot Point R2	1.2935
Daily Pivot Point R3	1.297

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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.