USD/CAD Price Analysis: Further downside hinges on 1.2450 break
- USD/CAD remains pressured around nine-week low, seesaws around 50% Fibonacci retracement level.
- Nearly oversold RSI hints at limited downside room, January’s low tests sellers as well.
- 10-DMA guards immediate upside, multiple hurdles to test bears before nine-month-old support line.
USD/CAD takes rounds to the short-term key Fibonacci retracement (Fibo.) support as bears take a breather around a two-month low during Monday’s initial Asian session. That said, the Loonie pair seesaws near 1.2480 by the press time.
A clear downside break of the 200-DMA and key support line from June 2021, now resistance around 1.2600, directed USD/CAD towards the lowest levels marked in 2022 during the last week.
However, the 50% Fibonacci retracement level of June-December 2021 upside, near 1.2485, limits the quote’s immediate moves.
Also challenging the quote’s further south-run is the RSI that is near to the oversold territory.
Hence, USD/CAD has limited room on the downside before allowing the bears to take a breather, which in turn highlights January’s low of 1.2450.
Even if the pair fails to rebound from 1.2450, multiple supports can test the bears between 1.2450 and the 1.2400 threshold.
Following that, the 61.8% Fibo. level near 1.2370 and an ascending support line from June 2021 near 1.2335 will act as the last defense of the USD/CAD bulls.
On the contrary, 10-DMA and the support-turned-resistance line, respectively near 1.2560 and 1.2600, challenge the USD/CAD pair’s short-term upside. Also acting as the key resistance is the 200-DMA level of 1.2615.
USD/CAD: Daily chart
Trend: Corrective pullback expected