USD/CAD Price Analysis: Extends pullback from key resistance towards 1.2850
- USD/CAD remains on the back foot after reversing from a 10-month-old resistance line.
- 38.2% Fibonacci retracement lures bears ahead of the 20-DMA support.
- Multiple hurdles around 1.3050, May’s peak adds to the upside filters.
USD/CAD keeps Fed-impressed losses, staying pressured around the intraday low of 1.2862, during Thursday’s Asian session.
The Loonie pair’s latest weakness could be linked to the sustained reversal from an upward sloping resistance line from August 2021. The stated pullback also gains support from the RSI retreat, which in turn solidifies bearish bias.
That said, the quote currently eyes the 38.2% Fibonacci retracement of October 2021 to May 2022 upside, around 1.2775. However, the 1.2800 threshold may offer an intermediate halt.
Should the quote USD/CAD bears keep reins past 1.2775, the 20-DMA support near 1.2730 could challenge the further downside.
Meanwhile, recovery moves need to cross the aforementioned resistance line, at 1.2985 by the press time, to recall the USD/CAD buyers.
Even so, the 1.3000 psychological magnet and multiple levels marked in May near 1.3050 could test the upside momentum before challenging the yearly top of 1.3076.
Overall, the USD/CAD pair’s retreat has a further downside to track but the sellers should not expected the trend reversal.
USD/CAD: Daily chart
Trend: Further weakness expected