USDCAD @ 1.27956 – Support/Resistance analysis: Price Analysis: 100 DMA continues to offer stiff resistance

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USDCAD @ 1.27956 – Support/Resistance analysis: Price Analysis: 100 DMA continues to offer stiff resistance

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• USD/CAD remains sandwiched between key daily moving averages.
• Bulls extend previous gains amid a renewed uptick in the US dollar.
• WTI tumbles amid China concerns but a test of 200 DMA remains on the cards.

The pair currently trades last at 1.27956.

The previous day high was 1.2803 while the previous day low was 1.274. The daily 38.2% Fib levels comes at 1.2779, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2764, expected to provide support.

USD/CAD is consolidating gains just below the 1.2800 level, as bulls take a breather after the latest leg higher. The pair continues to find solace from tumbling WTI prices and a renewed uptick in the US dollar.

The common factor influencing the dollar as well as the WTI’s price action is the latest disappointing data from China, which has weighed negatively on risk sentiment. Traders keep their focus on Wednesday’s Canadian inflation data and the Fed minutes for a fresh directional move on the major.

From a short-term technical perspective, USD/CAD has edged higher to challenge the mildly bullish 100-Daily Moving Average (DMA) at 1.2801.

A sustained break above the latter will open doors for the additional upside towards the downward-sloping 21 DMA at 1.2852.

The 14-day Relative Strength Index (RSI) is trading flat beneath the midline, supporting the case for the downside.

A retest of the 200 DMA at 1.2747 remains inevitable should the pair witness renewed selling in the sessions ahead.

Daily closing below the 200 DMA support will initiate a fresh downtrend back towards the 1.2600 level.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.2791 at the time of writing. Pair opened at 1.2782 and is trading with a change of 0.06 % .

The pair is trading below its 20 Daily moving average @ 1.2855, below its 50 Daily moving average @ 1.2883 , below its 100 Daily moving average @ 1.2799 and above its 200 Daily moving average @ 1.2746

The previous day high was 1.2803 while the previous day low was 1.274. The daily 38.2% Fib levels comes at 1.2779, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2764, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2747, 1.2711, 1.2683
• Pivot resistance is noted at 1.281, 1.2838, 1.2874

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