USD/CAD Price Analysis: Pullback from fortnight high remains elusive beyond 200-DMA
- USD/CAD snaps two-day rebound from eight-week-old descending resistance line.
- 61.8% Fibonacci retracement level can offer immediate support, weekly horizontal area adds to the downside filters.
- 100-DMA, 50% Fibo. probes bulls before giving them controls.
USD/CAD consolidates recent gains around 1.2570, down 0.10% intraday, during Monday’s Asian session.
In doing so, the Loonie pair takes a U-turn from a downward sloping resistance line from late November.
However, easing bearish bias of the MACD and the pair’s sustained trading beyond the 61.8% Fibonacci retracement (Fibo.) level of October-December 2021 upside, near 1.2550, keeps USD/CAD buyers hopeful. Also favoring the pair buyers is the successful trading beyond the 200-DMA.
That said, the quote’s latest pullback remains less important until staying beyond the aforementioned key Fibonacci retracement level and the 200-DMA, respectively around 1.2550 and 1.2500.
Even if the quote drops below 1.2500, a clear downside break of short-term horizontal support near 1.2450 will be necessary to recall bears.
On the flip side, the stated resistance line and the 100-DMA, around 1.2590 and 1.2625 in that order, will restrict the short-term upside of the USD/CAD prices.
It’s worth noting that the 50% Fibo. level near 1.2630 also challenges the pair buyers before directing them to the 1.2700 threshold.
USD/CAD: Daily chart
Trend: Further upside expected