USD/CAD Price Analysis: Keeps pullback from five-week-old resistance line above 1.2700

USD/CAD snaps two-day winning streak while easing from one-week top.
Strong RSI, sustained trading beyond 21-day EMA favor bulls.

Anil Panchal FXStreet

USD/CAD consolidates recent gains around 1.2740 during the initial Asian trading on Tuesday. The loonie pair jumped to the highest since January 18 the previous day while piercing a downward sloping trend line from December 21. However, failures to provide a daily closing beyond the stated resistance line test the buyers cheering a successful break of 21-day EMA.

With the RSI conditions being far from overbought, the USD/CAD upside momentum can’t be ruled out unless the quote stays above short-term EMA support. Though, a clear break of the immediate trend line resistance becomes necessary for the bull’s re-entry.

While an upside clearance of 1.2750, comprising the stated resistance line, can easily challenge the last week’s top surrounding 1.2800, further advances may be questioned by the monthly high near $1.2835.

On the contrary, a downside break of 21-day EMA, at 1.2731 now, will have 1.2700 and 1.2660-55 as following levels to please short-term USD/CAD sellers.

Though, a horizontal area including multiple lows marked since January 06, around 1.2630/25, will restrict the quote’s declines below 1.2655.

USD/CAD daily chart

Trend: Bullish

Additional important levels

Overview
Today last price	1.274
Today Daily Change	14 pips
Today Daily Change %	0.11%
Today daily open	1.2726

Trends
Daily SMA20	1.2721
Daily SMA50	1.2828
Daily SMA100	1.3016
Daily SMA200	1.3302

Levels
Previous Daily High	1.2741
Previous Daily Low	1.2629
Previous Weekly High	1.2799
Previous Weekly Low	1.259
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2698
Daily Fibonacci 61.8%	1.2672
Daily Pivot Point S1	1.2656
Daily Pivot Point S2	1.2586
Daily Pivot Point S3	1.2544
Daily Pivot Point R1	1.2768
Daily Pivot Point R2	1.2811
Daily Pivot Point R3	1.288

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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