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USD/CAD Price Analysis: Retreats from weekly tops, still well bid around mid-1.2600s

USD/CAD gained traction for the second straight day and recovered further from multi-year lows.
The momentum stalled near a descending trend-line/50% Fibo. confluence barrier near 1.2685.
Mixed technical indicators on hourly/daily charts warrant caution for aggressive bullish traders.

Haresh Menghani FXStreet

The USD/CAD pair gained traction for the second consecutive session on Friday and built on the previous day's solid rebound from three-year lows. The momentum pushed the pair to fresh weekly tops, albeit stalled near the 1.2685 confluence hurdle.

The mentioned region marks the 50% Fibonacci level of the 1.2882-1.2468 and monthly descending trend-line. This should now act as a key pivotal point for short-term traders and help determine the USD/CAD pair's next leg of a directional move.

Meanwhile, bullish technical indicators on hourly charts support prospects for additional gains. That said, oscillators on the daily chart – though have been recovering from the bearish territory – are yet to confirm a near-term positive bias.

This makes it prudent to wait for a sustained strength beyond the mentioned confluence barrier before confirming that the USD/CAD pair might have bottomed out in the near-term. This, in turn, will set the stage for a further appreciating move.

The USD/CAD pair might then surpass the 1.2700 mark and aim to test the 61.8% Fibo. level, around the 1.2725-30 region. The momentum could further get extended towards the 1.2775 intermediate resistance en-route the 1.2800 round-figure mark.

On the flip side, the 1.2600 mark now seems to protect the immediate downside. This is followed by support near the 23.6% Fibo. level, around the 1.2570-65 region, which if broken decisively will negate any positive outlook for the USD/CAD pair.

USD/CAD 4-hourly chart

Technical levels to watch

USD/CAD

Overview

Today last price

1.2636

Today Daily Change

0.0026

Today Daily Change %

0.21

Today daily open

1.261

Trends

Daily SMA20

1.27

Daily SMA50

1.2732

Daily SMA100

1.2885

Daily SMA200

1.3143

Levels

Previous Daily High

1.2613

Previous Daily Low

1.2468

Previous Weekly High

1.2746

Previous Weekly Low

1.2594

Previous Monthly High

1.2881

Previous Monthly Low

1.259

Daily Fibonacci 38.2%

1.2558

Daily Fibonacci 61.8%

1.2523

Daily Pivot Point S1

1.2515

Daily Pivot Point S2

1.2419

Daily Pivot Point S3

1.237

Daily Pivot Point R1

1.2659

Daily Pivot Point R2

1.2709

Daily Pivot Point R3

1.2804

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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