USD/CAD Price Analysis: Recovery moves need validation from 1.2680

USD/CAD bulls catch a breather after crossing one-week-old resistance, now support.
Strong RSI suggests further rise but a confluence of 100-bar SMA, 16-day-old descending trend line probes the buyers.
Bears can keep eyes on 2018 lows on the break of 1.2450.

Anil Panchal FXStreet

USD/CAD retraces the previous day’s heavy recovery, the strongest in a month, while battling the 1.2600 threshold during Friday’s Asian session.

The quote dropped to the fresh low since 2018 before bouncing off 1.2468 on Thursday. In doing so, the loonie pair broke an immediate resistance line, now support, amid oversold RSI.

Given the currently strong RSI conditions, the latest recovery is likely to extend unless the quote holds the trend line breakout. However, a convergence of 100-bar SMA and a downward sloping trend line from February 04, currently around 1.2680, will be the key to watch.

In a case where the quote rallies past-1.2680, multiple levels around 1.2760-65 will lure the USD/CAD buyers.

On the contrary, a downside break of the previous resistance line, at 1.2585 now, should drag the quote back towards the 1.2500 threshold ahead of highlighting the latest low of 1.2468 for the USD/CAD bears.

Though, any further weakness will be challenged by the mid-February 2018 bottom surrounding 1.2450, a break of which may not hesitate to attack the 2018 low of 1.2248.

USD/CAD four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.2596
Today Daily Change	85 pips
Today Daily Change %	0.68%
Today daily open	1.2511

Trends
Daily SMA20	1.271
Daily SMA50	1.2734
Daily SMA100	1.2891
Daily SMA200	1.315

Levels
Previous Daily High	1.2598
Previous Daily Low	1.251
Previous Weekly High	1.2746
Previous Weekly Low	1.2594
Previous Monthly High	1.2881
Previous Monthly Low	1.259
Daily Fibonacci 38.2%	1.2544
Daily Fibonacci 61.8%	1.2565
Daily Pivot Point S1	1.2481
Daily Pivot Point S2	1.2452
Daily Pivot Point S3	1.2393
Daily Pivot Point R1	1.2569
Daily Pivot Point R2	1.2628
Daily Pivot Point R3	1.2657

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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