USD/CAD Price Analysis: Renews three-week low as bears eye 1.2700

USD/CAD remains on the back foot around the lowest levels in three weeks.
Break of monthly support, descending RSI keeps sellers hopeful.
Bulls need to cross 21-DMA to retake control, 100/50-DMAs lure bears.

Anil Panchal FXStreet

USD/CAD takes offers to refresh intraday low, also the lowest level in three weeks, as bears cheer a clear downside break of the monthly support. That said, the Loonie pair stays depressed at around 1.2750 by the press time of early Friday morning in Europe.

An absence of oversold RSI joins the aforementioned trend line breakdown to favor sellers targeting a convergence of the 100-DMA and the 50-DMA, near 1.2700-2690.

However, the USD/CAD weakness past 1.2690 appears difficult, which if taken place could direct the quote towards an upward sloping support line from April 05, close to 1.2585.

Meanwhile, the support-turned-resistance line from late April, near 1.2785, restricts the USD/CAD pair’s recovery moves.

Following that, a two-week-old resistance line and the 21-DMA, respectively around 1.2840 and 1.2865, will challenge the buyers.

Overall, USD/CAD bears are all set to refresh the monthly low but the key moving averages may restrict further declines.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.275
Today Daily Change	-0.0024
Today Daily Change %	-0.19%
Today daily open	1.2774

Trends
Daily SMA20	1.2871
Daily SMA50	1.2704
Daily SMA100	1.2696
Daily SMA200	1.2663

Levels
Previous Daily High	1.2849
Previous Daily Low	1.2769
Previous Weekly High	1.2982
Previous Weekly Low	1.2776
Previous Monthly High	1.288
Previous Monthly Low	1.2403
Daily Fibonacci 38.2%	1.2799
Daily Fibonacci 61.8%	1.2818
Daily Pivot Point S1	1.2745
Daily Pivot Point S2	1.2717
Daily Pivot Point S3	1.2665
Daily Pivot Point R1	1.2825
Daily Pivot Point R2	1.2877
Daily Pivot Point R3	1.2906

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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