USD/CAD Price Analysis: Upside appears limited amid bearish technical setup

USD/CAD stalls the recovery attempt just shy of the 1.2500 mark.

Dhwani Mehta FXStreet

US dollar weakens while WTI recaptures the $80 mark
Four-hourly chart points to an additional downside while below 21-SMA.

USD/CAD has stalled its rebound from three-month troughs of 1.2446, as sellers return amid a pullback in the US dollar and a fresh uptick in oil prices.

The US oil is resuming its upside while recapturing the $80 mark while the greenback pulls back from near yearly tops despite the risk-off market profile.

The oil price action will be closely followed for fresh trading opportunities in the resource-linked loonie, as the main event risk remains the US inflation data due this Wednesday.

Looking at USD/CAD’s four-hour chart, the pair has failed to clear the 1.2500 mark on the road to recovery, leaving the rates consolidating in a tight range.

If the downside pressure intensifies, then the pair could drop back towards the multi-month lows of 1.2446.

Further south, the bulls will challenge the bearish commitments at 1.2396, which is the falling trendline support on the said time frame.

The Relative Strength Index (RSI) points lower below the midline, suggesting that there is room for additional decline.

USD/CAD: Four-hour chart

On the flip side, acceptance above 1.2500 will trigger a fresh advance towards the bearish 21-Simple Moving Average (SMA) at 1.2509.

The next relevant upside target for the buyers is seen at 1.2550, the psychological magnate.

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.2482
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.2484

Trends
Daily SMA20	1.2658
Daily SMA50	1.2628
Daily SMA100	1.2487
Daily SMA200	1.2513

Levels
Previous Daily High	1.2492
Previous Daily Low	1.2446
Previous Weekly High	1.2655
Previous Weekly Low	1.2452
Previous Monthly High	1.2896
Previous Monthly Low	1.2494
Daily Fibonacci 38.2%	1.2474
Daily Fibonacci 61.8%	1.2464
Daily Pivot Point S1	1.2457
Daily Pivot Point S2	1.2429
Daily Pivot Point S3	1.2412
Daily Pivot Point R1	1.2502
Daily Pivot Point R2	1.2519
Daily Pivot Point R3	1.2547

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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