USD/CAD Price Analysis: Rebound from monthly support eyes 1.2670 hurdle

USD/CAD pares intraday losses during a three-day downtrend.
Monthly support line, challenges bears, bulls seek 200-SMA, 38.2% Fibo. breakout for fresh entry.

Anil Panchal FXStreet

USD/CAD licks its wounds around 1.2630, down 0.10% intraday, ahead of Monday’s European session.

In doing so, the Loonie pair stays negative for the third consecutive day but an ascending support line from early September defends buyers.

However, a confluence of the 200-SMA and 38.2% Fibonacci retracement (Fibo.) of the late August to early September downside, near 1.2670, questions the pair’s immediate upside.

Also acting as an upside filter is a downward sloping trend line from September 20, near 1.2735.

Should the quote rise past 1.2735, 61.8% Fibo. level of 1.2775 and the last month’s top surrounding 1.2900 will be in focus.

Alternatively, a downside break of the immediate support line close to 1.2615 will be challenged by the 1.2600 threshold and the weak RSI conditions, not to forget the previous week’s swing low near 1.2590.

In a case where USD/CAD remains pressured past 1.2590, September’s low around 1.2490 should return to the chart.

USD/CAD: Four-hour chart

Trend: Corrective pullback expected

Additional important levels

Overview
Today last price	1.2634
Today Daily Change	-0.0012
Today Daily Change %	-0.09%
Today daily open	1.2646

Trends
Daily SMA20	1.2688
Daily SMA50	1.2625
Daily SMA100	1.2459
Daily SMA200	1.2519

Levels
Previous Daily High	1.2739
Previous Daily Low	1.2628
Previous Weekly High	1.2775
Previous Weekly Low	1.2594
Previous Monthly High	1.2896
Previous Monthly Low	1.2494
Daily Fibonacci 38.2%	1.267
Daily Fibonacci 61.8%	1.2697
Daily Pivot Point S1	1.2603
Daily Pivot Point S2	1.256
Daily Pivot Point S3	1.2491
Daily Pivot Point R1	1.2714
Daily Pivot Point R2	1.2783
Daily Pivot Point R3	1.2826

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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