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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