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.
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
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.
