USD/CAD Price Analysis: Retreats to 1.2350 after facing rejection from three-month-old hurdle

USD/CAD snaps three-day uptrend, steps back from seven-week top.
Overbought RSI, key resistance zone tease counter-trend traders, further losses aim for 1.2265-60.

Anil Panchal FXStreet

USD/CAD edges lower around 1.2345, down 0.10% intraday, amid Friday’s Asian session. The Loonie pair jumped to the highest since April 28 the previous day before reversing from 1.2378.

The pullback from the three-month-old resistance area surrounding 1.2365-50 also gains support of overbought RSI to suggest further weakness of the quote.

On its way down, USD/CAD may witness 1.2320 and the 1.2300 threshold as immediate rest-points ahead of highlighting the late April swing lows near 1.2265-60 as important support.

Should the bears keep reins below 1.2260, the odds of witnessing a slump to Tuesday’s top near 1.2200 can’t be ruled out.

Meanwhile, an upside clearance of 1.2365 hurdle will recall the 1.2400 round figure to the chart before directing USD/CAD buyers to April 27 top near 1.2420.

During the pair’s run-up past 1.2420, lows marked during March 19 and April 21 offer a strong resistance around 1.2465-70.

USD/CAD four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2346
Today Daily Change	-0.0012
Today Daily Change %	-0.10%
Today daily open	1.2358

Trends
Daily SMA20	1.2117
Daily SMA50	1.2238
Daily SMA100	1.2432
Daily SMA200	1.2716

Levels
Previous Daily High	1.2378
Previous Daily Low	1.2262
Previous Weekly High	1.2178
Previous Weekly Low	1.2057
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2334
Daily Fibonacci 61.8%	1.2307
Daily Pivot Point S1	1.2288
Daily Pivot Point S2	1.2217
Daily Pivot Point S3	1.2172
Daily Pivot Point R1	1.2403
Daily Pivot Point R2	1.2449
Daily Pivot Point R3	1.2519

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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