USD/CAD Price Analysis: Overbought RSI favors pullback to resistance-turned-support

USD/CAD bulls catch a break near a 38-month high.
Overbought RSI conditions can trigger pullback, MACD stays positive.
Buyers will look for entry beyond the recent high to question 2016 top.

Anil Panchal FXStreet

Following its jump to the highest since late-January 2016, USD/CAD seems to lack strength while taking rounds to 1.4200 amid the early Wednesday’s trading session.

In addition to its failure in extending the run-up, overbought RSI conditions also raise doubts on the pair’s further rally.

However, bullish MACD signals keep restricting the bears’ entry unless the quote slips below the three-week-old rising support line, previous resistance, currently at 1.4130.

In doing so, 1.4020 and 1.4000 will become their immediate targets while the weekly low near 1.3730 can please the sellers afterward.

Alternatively, bulls can renew buying pressure if the USD/CAD pair rises past the recent high of 1.4277, which in turn will open the gate for the additional rise towards 2016 top near 1.4690.

USD/CAD four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.4208
Today Daily Change	7 pips
Today Daily Change %	0.05%
Today daily open	1.4201

Trends
Daily SMA20	1.3525
Daily SMA50	1.3316
Daily SMA100	1.3247
Daily SMA200	1.3228

Levels
Previous Daily High	1.4277
Previous Daily Low	1.3961
Previous Weekly High	1.3996
Previous Weekly Low	1.3422
Previous Monthly High	1.3465
Previous Monthly Low	1.3202
Daily Fibonacci 38.2%	1.4156
Daily Fibonacci 61.8%	1.4082
Daily Pivot Point S1	1.4016
Daily Pivot Point S2	1.3831
Daily Pivot Point S3	1.3701
Daily Pivot Point R1	1.4331
Daily Pivot Point R2	1.4462
Daily Pivot Point R3	1.4647

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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