USD/CAD Price Analysis: Mildly offered at fortnight low near 1.2850, further downside expected

USD/CAD drops for the third consecutive day, extends pullback from six-week-old horizontal resistance.
Downbeat RSI favors bears targeting 200-SMA, double tops challenge the advances.

Anil Panchal FXStreet

USD/CAD prints a three-day downtrend as sellers flirt with the lowest levels in two weeks around 1.2860 during early Thursday morning in Europe.

The Loonie pair’s latest losses could be linked to the early week failure to cross a six-week-old horizontal resistance, as well as downbeat RSI (14).

With this, the USD/CAD sellers aim for the 100-SMA level surrounding 1.2840. However, the nearly oversold RSI conditions and the 200-SMA level, around 1.2805 by the press time, could restrict the quote’s further weakness.

In a case where the pair drops below 1.2805, the 50% and 61.8% Fibonacci retracement of April-June upside, respectively around 1.2770 and 1.2700, will be on the bear’s radar.

Meanwhile, USD/CAD bulls need a clear upside break of the 1.2900 mark, comprising the aforementioned horizontal area, to retake control.

Even so, the 1.3000 psychological magnet and the double tops marked around 1.3080 will be tough nuts to crack for the pair buyers.

Should the quote remains firmer past 1.3080, the odds of witnessing a rally towards the late 2020 peaks above 1.3400 can’t be ruled out.

USD/CAD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2862
Today Daily Change	-0.0017
Today Daily Change %	-0.13%
Today daily open	1.2879

Trends
Daily SMA20	1.2798
Daily SMA50	1.2807
Daily SMA100	1.2732
Daily SMA200	1.2678

Levels
Previous Daily High	1.2916
Previous Daily Low	1.2865
Previous Weekly High	1.3039
Previous Weekly Low	1.289
Previous Monthly High	1.3077
Previous Monthly Low	1.2629
Daily Fibonacci 38.2%	1.2884
Daily Fibonacci 61.8%	1.2897
Daily Pivot Point S1	1.2857
Daily Pivot Point S2	1.2835
Daily Pivot Point S3	1.2805
Daily Pivot Point R1	1.2909
Daily Pivot Point R2	1.2939
Daily Pivot Point R3	1.2961

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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