USD/CAD Price Analysis: Pullback remains elusive beyond 1.2885 support confluence

USD/CAD snaps two-day uptrend, remains pressured inside immediate trading range near two-year high.
Convergence of monthly support line, previous resistance from mid-June, restricts short-term downside.
Bulls need to cross two-month-old resistance to retake control.
Multiple failures to cross immediate hurdle, RSI conditions hint at further weakness.

Anil Panchal FXStreet

USD/CAD stays depressed around the intraday low of 1.3012 during the first negative daily performance in three. In doing so, the Loonie pair extends pullback from the upward sloping resistance line from May.

Given the RSI pullback from overbought territory joining the recent profit-booking of the USD/CAD prices, the quote is likely to extend the short-term weakness.

However, a confluence of the one-month-old support line joins descending trend line from June 17 to highlight 1.2885 as the key support. Also acting as a downside filter is the 200-SMA level surrounding 1.2820.

Alternatively, an ascending resistance line from May, near 1.3080, guards the immediate upside of the USD/CAD pair.

Following that, the 1.3100 threshold can act as an additional filter to the north before directing the buyers towards the late November 2020 highs near 1.3170.

Overall, USD/CAD retains its uptrend unless breaking 1.2885 level. However, the short-term pullback can’t be ruled out.

USD/CAD: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.3019
Today Daily Change	-0.0029
Today Daily Change %	-0.22%
Today daily open	1.3048

Trends
Daily SMA20	1.2915
Daily SMA50	1.2841
Daily SMA100	1.2747
Daily SMA200	1.2685

Levels
Previous Daily High	1.3078
Previous Daily Low	1.3012
Previous Weekly High	1.2966
Previous Weekly Low	1.2819
Previous Monthly High	1.3079
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.3053
Daily Fibonacci 61.8%	1.3037
Daily Pivot Point S1	1.3014
Daily Pivot Point S2	1.298
Daily Pivot Point S3	1.2948
Daily Pivot Point R1	1.308
Daily Pivot Point R2	1.3112
Daily Pivot Point R3	1.3146

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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