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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1.2679
Today Daily Change	-0.0011
Today Daily Change %	-0.09%
Today daily open	1.269

Trends
Daily SMA20	1.2616
Daily SMA50	1.2717
Daily SMA100	1.2625
Daily SMA200	1.2513

Levels
Previous Daily High	1.2716
Previous Daily Low	1.2658
Previous Weekly High	1.2797
Previous Weekly Low	1.2554
Previous Monthly High	1.2814
Previous Monthly Low	1.2451
Daily Fibonacci 38.2%	1.2693
Daily Fibonacci 61.8%	1.268
Daily Pivot Point S1	1.266
Daily Pivot Point S2	1.263
Daily Pivot Point S3	1.2603
Daily Pivot Point R1	1.2718
Daily Pivot Point R2	1.2746
Daily Pivot Point R3	1.2776

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 flat lines below 1.1900; divergent Fed-ECB expectations offer support

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1835-1.1830 region and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.1875 area, remaining nearly unchanged for the day and staying within striking distance of an over one-week high, reached on Tuesday, amid mixed cues.

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions.

Gold posts modest gains above $5,050 as US-Iran tensions persist despite strong labor data

Gold price trades in positive territory near $5,060 during the early Asian session on Thursday. The precious metal edges higher despite stronger-than-expected US employment data. The release of the US Consumer Price Index inflation report will take center stage later on Friday.

Bitcoin holds steady despite strong US labour market

Bitcoin briefly bounced from $66,000 to above $68,000 but slightly reversed those gains following Wednesday's US January jobs report. The top crypto is hovering around $67,000, down 2% over the past 24 hours as of writing on Wednesday.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.