USD/CAD Price Analysis: Bulls need validation from 1.2880 for further upside

USD/CAD eases from three-month high, after five-day uptrend.
61.8% Fibonacci retracement level, RSI conditions challenge buyers.
Tops marked during December 2020, August 2021 lures bulls past 1.2880.
10-DMA restricts immediate downside, two-month-old support line becomes the key.

Anil Panchal FXStreet

USD/CAD bulls take a breather around the highest levels since late September, easing to 1.2857 during Wednesday’s Asian session.

In doing so, the Loonie pair retreats below 61.8% Fibonacci retracement (FIbo.) level of September 2020 to June 2021 downside, around 1.2880, amid nearly overbought RSI conditions.

Even so, the 10-DMA level of 1.2767 restricts immediate losses ahead of the 50% retracement close to 1.2710.

Also acting as strong support is an upward sloping trend line from late October, surrounding 1.2650 at the latest.

Alternatively, a clear upside break of the 1.2880 hurdle will serve as a trigger to the further advances targeting tops marked during late 2020 and 2021, around 1.2950-60.

Furthermore, a descending trend line from September 2020 near 1.2980 and the 1.3000 threshold will become additional challenges for the USD/CAD bulls to cross past 1.2960.

USD/CAD: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2867
Today Daily Change	0.0010
Today Daily Change %	0.08%
Today daily open	1.2857

Trends
Daily SMA20	1.2725
Daily SMA50	1.2552
Daily SMA100	1.2588
Daily SMA200	1.2479

Levels
Previous Daily High	1.2864
Previous Daily Low	1.2797
Previous Weekly High	1.2843
Previous Weekly Low	1.2608
Previous Monthly High	1.2837
Previous Monthly Low	1.2352
Daily Fibonacci 38.2%	1.2838
Daily Fibonacci 61.8%	1.2823
Daily Pivot Point S1	1.2815
Daily Pivot Point S2	1.2773
Daily Pivot Point S3	1.2748
Daily Pivot Point R1	1.2881
Daily Pivot Point R2	1.2906
Daily Pivot Point R3	1.2948

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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