USD/CAD Price Analysis: Corrective pullback seeks validation from 1.2800

USD/CAD prints mild gains as it consolidates the biggest daily fall in two-months.
Six-week-old support line, 200-DMA challenged bears but 100-DMA guards recovery moves.
Sluggish MACD, RSI (14) fail to support recovery moves from the lowest levels since early June.

Anil Panchal FXStreet

USD/CAD grinds higher around the daily top as it pares the biggest daily slump since June near 1.2790 during early Thursday morning in Europe.

In doing so, the Loonie pair extends the previous day’s rebound from the convergence of the 200-DMA and a downward sloping support line from late June, around 1.2745-50. However, the 100-DMA challenges the quote’s immediate upside near the 1.2800 threshold.

It’s worth noting that the sluggish RSI and MACD fail to entertain the USD/CAD pair’s latest corrective pullback as it bounces off a two-month low.

Even if the quote crosses the 1.2800 immediate resistance, the monthly peak of 1.2985 and the 1.3000 round figure could challenge the buyers.

On the contrary, pullback remains elusive until the USD/CAD prices remain beyond 1.2745-50 support confluence.

Following that, the 61.8% Fibonacci retracement of April-July upside, near 1.2715, can entertain the pair sellers.

It’s worth noting, however, that the USD/CAD weakness past 1.2745 could drag it to the upward sloping support line from April 05, close to 1.2630 by the press time.

USD/CAD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2788
Today Daily Change	0.0013
Today Daily Change %	0.10%
Today daily open	1.2775

Trends
Daily SMA20	1.2885
Daily SMA50	1.2875
Daily SMA100	1.2793
Daily SMA200	1.2743

Levels
Previous Daily High	1.2896
Previous Daily Low	1.2751
Previous Weekly High	1.2985
Previous Weekly Low	1.2768
Previous Monthly High	1.3224
Previous Monthly Low	1.2789
Daily Fibonacci 38.2%	1.2806
Daily Fibonacci 61.8%	1.284
Daily Pivot Point S1	1.2719
Daily Pivot Point S2	1.2663
Daily Pivot Point S3	1.2575
Daily Pivot Point R1	1.2863
Daily Pivot Point R2	1.2952
Daily Pivot Point R3	1.3008

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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