USD/CAD Price Analysis: Keeps pullback from 50-DMA above 1.2620 key support
- USD/CAD fades the previous day’s bounce from weekly low.
- A confluence of 100-DMA, 50% Fibonacci retracement restrict short-term downside.
- Steady RSI, bullish MACD signals keep buyers hopeful.
- Previous support line, 50-DMA guards nearby advances ahead of January’s top.
USD/CAD remains pressured around 1.2680 during Friday’s Asian session, following the previous day’s U-turn from 50-DMA.
Thursday’s pullback also marked the quote’s inability to cross the previous support line from January 19, around 1.2715.
However, a convergence of the 100-DMA and 50% Fibonacci retracement (Fibo.) of October-December 2021 upside, near 1.2620, becomes the key support to watch during the quote’s further weakness. That said, firmer RSI and MACD signals are in favor of buyers.
Hence, USD/CAD prices are likely to have a limited horizon to move during the key jobs report, between 1.2715 and 1.2620.
Should the quote drops below 1.2620, the mid-January peak near 1.2570 may entertain USD/CAD bears before directing them to the yearly low of 1.2450.
On the contrary, an upside clearance of 1.2715 resistance will direct the quote towards January’s peak of 1.2813.
USD/CAD: Daily chart
Trend: Further upside 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.
