USD/CAD Price Analysis: Refreshes two-month low near 1.2550, further downside likely

USD/CAD takes offered to renew multi-day bottom, drops for the second consecutive day.
Clear downside break of 100-DMA, bearish MACD signals favor sellers to aim for 200-DMA.
38.2% Fibonacci retracement guards immediate upside, ascending trend line from June adds to the downside filters.

Anil Panchal FXStreet

USD/CAD stands on slippery grounds near 1.2553, down 0.20% intraday, heading into Wednesday’s European session.

In doing so, the loonie pair extends the previous day’s 100-DMA breakdown to drop to the fresh low since November 17.

Other than the clear downside break of the 100-DMA, bearish MACD signals also favor USD/CAD bears to aim for the 200-DMA support level of 1.2500.

However, 50% Fibonacci retracement (Fibo.) of June-December 2021 upside, around 1.2485, will precede an upward sloping support line from June, close to 1.2450, to challenge the Loonie pair’s further downside.

Alternatively, 38.2% Fibo. restricts the quote’s nearby advances close to the 1.2600 threshold, a break of which will redirect the USD/CAD prices towards the 100-DMA level of 1.2627.

It’s worth noting that the 23.6% Fibonacci retracement and a descending resistance line from December 20, respectively around 1.2740 and 1.2770, will challenge the USD/CAD bulls past the 100-DMA.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2554
Today Daily Change	-0.0023
Today Daily Change %	-0.18%
Today daily open	1.2577

Trends
Daily SMA20	1.2773
Daily SMA50	1.2697
Daily SMA100	1.2628
Daily SMA200	1.2503

Levels
Previous Daily High	1.2685
Previous Daily Low	1.2567
Previous Weekly High	1.2814
Previous Weekly Low	1.2631
Previous Monthly High	1.2964
Previous Monthly Low	1.2608
Daily Fibonacci 38.2%	1.2612
Daily Fibonacci 61.8%	1.264
Daily Pivot Point S1	1.2535
Daily Pivot Point S2	1.2492
Daily Pivot Point S3	1.2417
Daily Pivot Point R1	1.2652
Daily Pivot Point R2	1.2727
Daily Pivot Point R3	1.277

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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