USD/CAD technical analysis: Struggles between 200-DMA and 50% Fibo. inside rising channel

USD/CAD turns choppy inside a five-week-old rising channel.
Near overbought RSI conditions likely dragging prices if 200-DMA breaks.

Anil Panchal FXStreet

Despite registering another failure to rise past 50% Fibonacci retracement of December 2018 to July 219 declines, USD/CAD trades modestly unchanged to 1.3315 during early Friday.

The reason seems strong support provided by 200-day simple moving average (DMA) around 1.3305/10.

However, near overbought conditions of 14-bar relative strength index (RSI) increases the odds for the pair’s dip to 38.2% Fibonacci retracement level of 1.3263 but channel-support close to 1.3240 will limit further weakness.

If prices refrain to respect 1.3240, 50-DMA level of 1.3185 will be in the spotlight.

Meanwhile, an upside clearance of 1.3340 comprising 50% Fibonacci retracement can propel the quote to channel-resistance of 1.3380.

USD/CAD daily chart

Trend: Pullback expected

1. R3 1.3395
2. R2 1.3367
3. R1 1.3341
PP 1.3313
1. S1 1.3287
2. S2 1.3259
3. S3 1.3233

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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