USD/CAD Price Analysis: On track to test key resistance around 1.2565

USD/CAD rebounds in tandem with the US dollar, recaptures 1.2500.
Oil price weakness also lends support to the major.
Daily technical graph points to an extension of the rebound towards key hurdle.

Dhwani Mehta FXStreet

USD/CAD has stalled its two-day bearish momentum, attempting a bounce above 1.2500 in the European session.

The cautious market mood has lifted the US dollar’s safe-haven appeal while the renewed weakness in oil prices also aids the pullback in the major.

The technical setup on the daily chart also appears in favor of the USD/CAD bulls, as traders await the US data sets for fresh trading cues.

USD/CAD is reversing a brief dip below 1.2500, as it looks to extends its rebound towards the critical upside hurdle around 1.2565, where the 21-Daily Moving Average (DMA) coincides with the bearish 200-DMA.

A daily closing above the latter is needed to negate the near-term bearish view. Next of note for the buyers remains the August 10 highs of 1.2589.

The 14-day Relative Strength Index (RSI) is edging slightly higher above the midline, suggesting that the bulls could extend the recovery momentum.

USD/CAD: Daily chart

On the flip side, if the bears take out Wednesday’s low 1.2489, then a fresh drop towards the 1.2450 psychological level cannot be ruled.

The last line of defense for the USD/CAD bulls is aligned at the upward-pointing 50-DMA at 1.2419.

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.2521
Today Daily Change	0.0016
Today Daily Change %	0.13
Today daily open	1.2505

Trends
Daily SMA20	1.2558
Daily SMA50	1.2411
Daily SMA100	1.2371
Daily SMA200	1.257

Levels
Previous Daily High	1.2548
Previous Daily Low	1.2489
Previous Weekly High	1.2581
Previous Weekly Low	1.2453
Previous Monthly High	1.2808
Previous Monthly Low	1.2303
Daily Fibonacci 38.2%	1.2512
Daily Fibonacci 61.8%	1.2526
Daily Pivot Point S1	1.248
Daily Pivot Point S2	1.2455
Daily Pivot Point S3	1.2421
Daily Pivot Point R1	1.2539
Daily Pivot Point R2	1.2573
Daily Pivot Point R3	1.2598

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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