USD/CAD Price Analysis: Refreshes five-week low around mid-1.2400s on bearish flag confirmation

USD/CAD takes offers around the lowest since March 18.
Confirmation of bearish chart pattern, sustained trading below 200-HMA back sellers.
Bulls need a decisive break above 1.2540 for fresh entry.

Anil Panchal FXStreet

USD/CAD drops to the fresh low in five weeks while flashing 1.2450 figures on the chart, down 0.19% intraday, while heading into Monday’s European session.

The pair’s sustained drop below a three-day-long ascending trend channel, part of the said formation, confirms the bearish flag and directs the quote further towards the south.

Although February 2018 low surrounding 1.2255 appears as the theoretical choice on the bearish flag breakdown, the yearly bottom close to 1.2365 may offer an intermediate halt during the south-run.

During the quote’s corrective pullback, which is less likely considering the Momentum indicator and a sustained break of a bearish chart pattern, the stated channel’s support line near 1.2475 becomes the nearby hurdle to watch.

However, any further recovery beyond 1.2475 needs to cross the 200-HMA level of 1.2520, not to forget the channel’s upper line near 1.2530, before challenging a one-week-old horizontal resistance near 1.2540.

USD/CAD hourly chart

Trend: Bearish

Additional important levels

Overview
Today last price	1.2452
Today Daily Change	-24 pips
Today Daily Change %	-0.19%
Today daily open	1.2476

Trends
Daily SMA20	1.255
Daily SMA50	1.2575
Daily SMA100	1.2666
Daily SMA200	1.293

Levels
Previous Daily High	1.251
Previous Daily Low	1.2461
Previous Weekly High	1.2654
Previous Weekly Low	1.246
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.248
Daily Fibonacci 61.8%	1.2491
Daily Pivot Point S1	1.2455
Daily Pivot Point S2	1.2434
Daily Pivot Point S3	1.2407
Daily Pivot Point R1	1.2503
Daily Pivot Point R2	1.2531
Daily Pivot Point R3	1.2552

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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