USD/CAD Price Analysis: Pullback moves seek validation from 1.3000

USD/CAD retreats from 18-month high on failure to cross immediate resistance line.
Descending RSI line adds strength to the bearish bias.
100-HMA, one-week-old ascending trend line puts a floor under short-term downside.
Bulls can aim for late 2020 swing high on crossing 1.3080 hurdle.

Anil Panchal FXStreet

USD/CAD consolidates recent gains while easing from the highest level since November 2020, renewing an intraday low around 1.3010 by the press time of Friday’s Asia session.

In doing so, the Loonie pair portrays a pullback from a four-day-old resistance line, around 1.3080 by the press time.

Given the downward sloping RSI (14) line, not oversold, the latest weakness in prices may prevail for a bit more ahead of hitting any crucial support.

That said, a convergence of the 100-HMA and a one-week-old rising trend line appears, around 1.2995, a tough nut to crack for the USD/CAD bears.

In a case where the quote drops below 1.2995, multiple levels surrounding 1.2920-10, which includes early May’s high and the 200-HMA, will entertain the pair sellers.

On the flip side, a clear break of the aforementioned short-term resistance line of 1.3080 will need validation from the 1.3100 threshold before aiming for the late November 2020 peak of 1.3172.

To sum up, USD/CAD weakness isn’t a sign of trend reversal unless the quote breaks 1.2920.

USD/CAD: Hourly chart

Trend: Bullish

Additional important levels

Overview
Today last price	1.3016
Today Daily Change	-0.0028
Today Daily Change %	-0.21%
Today daily open	1.3044

Trends
Daily SMA20	1.2797
Daily SMA50	1.2691
Daily SMA100	1.2688
Daily SMA200	1.2651

Levels
Previous Daily High	1.3077
Previous Daily Low	1.2977
Previous Weekly High	1.2914
Previous Weekly Low	1.2713
Previous Monthly High	1.288
Previous Monthly Low	1.2403
Daily Fibonacci 38.2%	1.3039
Daily Fibonacci 61.8%	1.3015
Daily Pivot Point S1	1.2988
Daily Pivot Point S2	1.2933
Daily Pivot Point S3	1.2889
Daily Pivot Point R1	1.3088
Daily Pivot Point R2	1.3132
Daily Pivot Point R3	1.3188

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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