USD/CAD Price Analysis: Intraday positive move falters near 1.2800 confluence hurdle

USD/CAD gained strong follow-through traction for the second consecutive session on Monday.
The momentum stalled near the around the 1.2800 mark, or 200-period SMA on the 4-hourly chart.
Bulls might wait for a sustained move beyond the mentioned barrier before placing fresh bets.

Haresh Menghani FXStreet

The USD/CAD pair built on last week's goodish rebound from multi-year lows and gained strong follow-through traction for the second consecutive session on Monday.

Bulls, however, struggled to capitalize on the momentum and faced rejection near the 1.2800 confluence resistance. The mentioned barrier comprises of 200-period SMA on the 4-hourly chart and a descending trend-line, extending from mid-November.

Meanwhile, technical indicators on hourly charts have been gaining positive traction but are yet to confirm a bullish bias on the daily charts. This, in turn, warrants some caution before positioning for any further appreciating move.

Hence, it will be prudent to wait for some follow-through buying beyond the 1.2800 mark pivotal point in order to confirm that the USD/CAD pair has bottomed out in the near-term. This, in turn, will be seen as a fresh trigger for bullish traders.

Any further positive move is likely to confront resistance near monthly swing highs, around the 1.2835 region. A sustained strength above will be seen as a fresh trigger for bullish traders and push the USD/CAD pair towards the 1.2900 mark.

The momentum could further get extended towards an intermediate resistance near the 1.2955 region, above which the USD/CAD pair seems all set to aim back towards conquering the key 1.3000 psychological mark.

On the flip side, immediate support is pegged near the 1.2740-35 horizontal zone. A convincing break below might turn the USD/CAD pair vulnerable to break below the 1.2700 mark and slide further towards testing the next relevant support near the 1.2670-65 region.

USD/CAD 4-hourly chart

Technical levels to watch

USD/CAD

Overview
Today last price	1.2772
Today Daily Change	0.0038
Today Daily Change %	0.30
Today daily open	1.2734

Trends
Daily SMA20	1.2763
Daily SMA50	1.2866
Daily SMA100	1.3035
Daily SMA200	1.3335

Levels
Previous Daily High	1.2765
Previous Daily Low	1.2634
Previous Weekly High	1.2836
Previous Weekly Low	1.2625
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2715
Daily Fibonacci 61.8%	1.2684
Daily Pivot Point S1	1.2657
Daily Pivot Point S2	1.258
Daily Pivot Point S3	1.2526
Daily Pivot Point R1	1.2787
Daily Pivot Point R2	1.2841
Daily Pivot Point R3	1.2918

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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