USD/CAD Price Analysis: Recovery remains capped around 1.2600

USD/CAD grinds higher around intraday top, challenges the bears after three-day fall.
Bearish MACD, sustained trading below the key Fibonacci retracement levels, SMA hints at underlying weakness.
Monthly horizontal support guards immediate downside, fortnight-long descending trend line adds to the upside filters.

Anil Panchal FXStreet

USD/CAD defends the 1.2600 threshold while snapping a three-day downtrend during early Tuesday.

In doing so, the quote keeps rebound from a one-month-long horizontal area but remains below the key Fibonacci retracement (Fibo.) levels of early September advances amid bearish MACD signals.

Hence, the corrective pullback may remain less interesting until staying below 61.8% Fibo. level around 1.2650.

Also acting as upside barriers is the 200-SMA and a descending resistance line from September 20, respectively near 1.2665 and 1.2705.

In a case where USD/CAD bulls manage to pierce the 1.2705 hurdle, the late September swing high close to 1.2775 will be in focus.

Alternatively, pullback moves may aim for the monthly horizontal support retest, near 1.2555, a break of which will direct the USD/CAD sellers towards the last monthly bottom of 1.2493.

During the quote’s weakness past 1.2493, July’s low surrounding 1.2420 will be crucial to follow.

USD/CAD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2608
Today Daily Change	0.0018
Today Daily Change %	0.14%
Today daily open	1.259

Trends
Daily SMA20	1.2691
Daily SMA50	1.2626
Daily SMA100	1.2464
Daily SMA200	1.2518

Levels
Previous Daily High	1.2655
Previous Daily Low	1.2558
Previous Weekly High	1.2775
Previous Weekly Low	1.2594
Previous Monthly High	1.2896
Previous Monthly Low	1.2494
Daily Fibonacci 38.2%	1.2595
Daily Fibonacci 61.8%	1.2618
Daily Pivot Point S1	1.2547
Daily Pivot Point S2	1.2504
Daily Pivot Point S3	1.245
Daily Pivot Point R1	1.2644
Daily Pivot Point R2	1.2697
Daily Pivot Point R3	1.274

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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