USD/CAD Price Analysis: Rejects fortnight-old bearish channel as bulls approach 1.2900

USD/CAD takes the bids to refresh intraday high during three-day uptrend.
Bullish MACD signals, successful break of two-week-old bearish channel’s resistance favors buyers.
200-SMA acts as an additional upside filter while sellers have a bumpy road to return.

Anil Panchal FXStreet

USD/CAD extends the previous upside momentum while ejecting the short-term bearish chart pattern during Wednesday’s Asian session. In doing so, the Loonie pair refreshes intraday high around 1.2890 during the three-day uptrend.

In addition to the clear upside break of the two-week-old descending trend channel, the bullish MACD signals also keep USD/CAD buyers hopeful.

However, the 200-SMA hurdle surrounding 1.2930 probes the upside momentum before highlighting the 1.3000 threshold for the bulls.

In a case where the USD/CAD prices remain firm past 1.3000, the previous monthly peak near 1.3225 will be in focus.

Alternatively, sellers need to wait for a sustained pullback below the resistance-turned-support line, near 1.2875 at the latest.

It’s worth noting, however, that the USD/CAD weakness past 1.2875 appears bumpy as multiple support levels around 1.2800 could challenge the bears before the stated channel’s lower line, close to 1.2750 at the latest.

During the quote’s weakness past 1.2750, the odds of witnessing a south-run towards June’s low near 1.2515 can’t be ruled out.

USD/CAD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2883
Today Daily Change	0.0038
Today Daily Change %	0.30%
Today daily open	1.2845

Trends
Daily SMA20	1.2933
Daily SMA50	1.2856
Daily SMA100	1.2777
Daily SMA200	1.2726

Levels
Previous Daily High	1.2856
Previous Daily Low	1.2768
Previous Weekly High	1.2947
Previous Weekly Low	1.2789
Previous Monthly High	1.3224
Previous Monthly Low	1.2789
Daily Fibonacci 38.2%	1.2822
Daily Fibonacci 61.8%	1.2801
Daily Pivot Point S1	1.279
Daily Pivot Point S2	1.2734
Daily Pivot Point S3	1.2701
Daily Pivot Point R1	1.2878
Daily Pivot Point R2	1.2912
Daily Pivot Point R3	1.2967

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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