USD/CAD Price Analysis: Remains pressured around 1.2800 as bears approach monthly support

USD/CAD extends the previous day’s pullback from 21-DMA, taking rounds to two-week low.
Bearish MACD signals, descending RSI line direct sellers towards monthly support.
Convergence of the 50-DMA, 100-DMA appears a tough nut to crack for bears.

Anil Panchal FXStreet

USD/CAD stays on the back foot around the intraday low, surrounding a fortnight bottom, as bears cheer Friday’s pullback from the 21-DMA heading into Monday’s European session. That said, the Loonie pair drops to 1.2800 by the press time.

In addition to the sustained trading below 1.2800, bearish MACD signals and downward sloping RSI (14) line also keeps USD/CAD bears hopeful to revisit an ascending support line from April 26, around 1.2760 at the latest.

It’s worth noting, however, that the pair’s weakness past 1.2760 appears elusive as the 50-DMA and the 100-DMA will challenge the sellers around the 1.2700-2690 area.

Also acting as a downside filter is the 61.8% Fibonacci retracement (Fibo.) of April-May upside, around 1.2650.

Meanwhile, recovery moves need to cross the 21-DMA hurdle surrounding 1.2870 to recall the USD/CAD buyers.

Following that, an upward trajectory towards a 23.6% Fibo level near 1.2915 can’t be ruled out.

However, the 1.3000 psychological magnet may test USD/CAD bulls ahead of directing them towards the monthly peak of 1.3076.

USD/CAD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2804
Today Daily Change	-0.0036
Today Daily Change %	-0.28%
Today daily open	1.284

Trends
Daily SMA20	1.2872
Daily SMA50	1.2699
Daily SMA100	1.2694
Daily SMA200	1.266

Levels
Previous Daily High	1.2868
Previous Daily Low	1.2776
Previous Weekly High	1.2982
Previous Weekly Low	1.2776
Previous Monthly High	1.288
Previous Monthly Low	1.2403
Daily Fibonacci 38.2%	1.2833
Daily Fibonacci 61.8%	1.2811
Daily Pivot Point S1	1.2788
Daily Pivot Point S2	1.2736
Daily Pivot Point S3	1.2696
Daily Pivot Point R1	1.288
Daily Pivot Point R2	1.292
Daily Pivot Point R3	1.2971

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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