USD/CAD Price Analysis: Sellers eye 200-SMA amid bearish technical setup

USD/CAD accelerating downside towards 200-HMA.
A rising channel breakdown spotted on 15-minutes chart.
1.2778 is likely to keep the recovery attempts limited.

Dhwani Mehta FXStreet

USD/CAD is feeling the pull of the gravity in early European trading, tracking the retreat in the US dollar alongside the Treasury yields.

Additionally, renewed strength seen in WTI prices seems to be boding well for the resource-linked loonie, as the major flirts with daily lows above the midpoint of the 1.2700 level.

The dollar’s pullback also collaborates with the rising channel breakdown on the 15-minutes chart, which is likely to exacerbate the pain in USD/CAD.

The bears now target the 200-simple moving average (SMA) support at 1.2742, with the Relative Strength Index (RSI) probing the oversold territory, at the time of writing.

The decline gathered steam after the price cut through the critical support at 1.2778, which the convergence of the 50 and 100-SMAs.

Any pullbacks will be likely restricted by the latter. The path of least resistance appears to the downside, as the 21-SMA is on the verge of crossing the 50 and 100-SMAs from above, confirming a bearish crossover.

USD/CAD: Hourly chart

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.2761
Today Daily Change	-0.0013
Today Daily Change %	-0.10
Today daily open	1.2778

Trends
Daily SMA20	1.2772
Daily SMA50	1.2898
Daily SMA100	1.3053
Daily SMA200	1.336

Levels
Previous Daily High	1.2836
Previous Daily Low	1.2698
Previous Weekly High	1.2798
Previous Weekly Low	1.263
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2783
Daily Fibonacci 61.8%	1.275
Daily Pivot Point S1	1.2705
Daily Pivot Point S2	1.2632
Daily Pivot Point S3	1.2567
Daily Pivot Point R1	1.2843
Daily Pivot Point R2	1.2908
Daily Pivot Point R3	1.2981

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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