USD/CAD Price Analysis: Sellers attack 200-SMA after breaking three-week-old support

USD/CAD keeps break of short-term support during four-day downtrend.
Key SMA challenges further downside amid nearly oversold RSI.
Recovery moves will have multiple hurdles before reaching 1.2900 resistance.

Anil Panchal FXStreet

USD/CAD stays pressured around an intraday low of 1.2641, down 0.08% during the fourth daily fall amid early Friday.

In doing so, the Loonie pair sellers justify the downside break of an ascending support line, now resistance around 1.2705, while jostling with the 200-SMA.

It should be observed that the RSI conditions are nearly oversold and the key SMA support around 1.2645 challenge the pair’s further weakness.

Even if the quote drops below 1.2645, the August-end lows near 1.2570 and the monthly low surrounding 1.2495 will be crucial to follow.

Alternatively, recovery moves beyond the support-turned-resistance around 1.2705 will aim for 50% Fibonacci retracement (Fibo.) of late August to early September declines, near 1.2725.

Should USD/CAD buyers manage to keep the controls past 1.2725, 61.8% Fibo near 1.2775 will be an important hurdle towards the run-up to the monthly peak of 1.2896 and the yearly top surrounding 1.2950.

USD/CAD: Four-hour chart

Trend: Corrective pullback expected

Additional important levels

Overview
Today last price	1.2646
Today Daily Change	-0.0010
Today Daily Change %	-0.08%
Today daily open	1.2656

Trends
Daily SMA20	1.2663
Daily SMA50	1.2618
Daily SMA100	1.2426
Daily SMA200	1.2525

Levels
Previous Daily High	1.2796
Previous Daily Low	1.2634
Previous Weekly High	1.2774
Previous Weekly Low	1.2601
Previous Monthly High	1.2949
Previous Monthly Low	1.2453
Daily Fibonacci 38.2%	1.2696
Daily Fibonacci 61.8%	1.2734
Daily Pivot Point S1	1.2594
Daily Pivot Point S2	1.2533
Daily Pivot Point S3	1.2432
Daily Pivot Point R1	1.2757
Daily Pivot Point R2	1.2858
Daily Pivot Point R3	1.2919

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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