USD/CAD Price Analysis: Bears challenge 38.2% Fibonacci retracement

USD/CAD fails to capitalize the previous session’s gains on Wednesday.
Bulls face stiff resistance near the 1.2580-1.2620 zone.
Momentum oscillator holds onto the oversold zone with negative bias.

Rekha Chauhan Independent Analyst

USD/CAD accumulates losses on Wednesday in the European trading session. The pair opened higher, however, not able to preserve the momentum and retreated towards the lower level.

At the time of writing, USD/CAD is trading at 1.2580, down 0.17% for the day.

USD/CAD daily chart

On the daily chart, the USD/CAD pair has been taking strong support near the 1.2550 level with multiple bottom formations.

If price remains below the session low, it could test the previous day’s low at 1.2538 as the first downside target.

The Moving Average Convergence Divergence (MACD) indicator holds over the oversold with bearish crossover. Any downtick in the MACD could intensify the selling pressure toward the 1.2500 horizontal support level.

Next, the USD/CAD bears would aim for the 50% Fibonacci retracement, which extends from the low of 1.2129, at 1.2477.

Alternatively, if price moves higher then it could be to the 23.6% Fibonacci retracement at 1.2650.

A daily close above the mentioned level would prompt bulls to continue with the prevailing upside momentum.

The next area of support for the market participant would be the 1.2700 horizontal resistance level followed by the high of July 21 at 1.2730.

USD/CAD additional levels

USD/CAD

Overview
Today last price	1.258
Today Daily Change	-0.0022
Today Daily Change %	-0.17
Today daily open	1.2602

Trends
Daily SMA20	1.2518
Daily SMA50	1.2313
Daily SMA100	1.237
Daily SMA200	1.2608

Levels
Previous Daily High	1.2605
Previous Daily Low	1.2538
Previous Weekly High	1.2808
Previous Weekly Low	1.2526
Previous Monthly High	1.2487
Previous Monthly Low	1.2007
Daily Fibonacci 38.2%	1.2579
Daily Fibonacci 61.8%	1.2564
Daily Pivot Point S1	1.2559
Daily Pivot Point S2	1.2515
Daily Pivot Point S3	1.2492
Daily Pivot Point R1	1.2625
Daily Pivot Point R2	1.2648
Daily Pivot Point R3	1.2691

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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