USD/CAD: Any meaningful recovery still seems elusive below 1.2700

Resurgent USD demand assisted USD/CAD to stage a goodish bounce from the 100-day SMA support. The pair inched back closer to the 1.2700 mark, though any meaningful recovery still seems elusive while below this level, FXStreet’s Haresh Menghani reports.

USD/CAD defends 100-DMA/50% Fibo. confluence around 1.2625

“The 100-day SMA and the 50% Fibonacci level of the 1.2288-1.2964 strong move up around the 1.2625 area should now act as a pivotal point for short-term traders. Some follow-through selling would turn the pair vulnerable to break below the 1.2600 mark and set the stage for an extension of the downward trajectory. The next relevant support is pegged near the 1.2540 region, marking the 61.8% Fibo. level, ahead of the key 1.2500 psychological mark.”

“The 38.2% Fibo. level, around the 1.2700 mark now seems to act as immediate resistance. A sustained strength beyond could push USD/CAD back towards the ascending channel breakpoint, which coincided with the 1.2765 horizontal support. This is followed by the 23.6% Fibo. level, around the 1.2800 round figure.”

“A convincing breakthrough at the 1.2800 level is needed to confirm that the recent corrective pullback has run its course and pave the way for the resumption of the prior bullish trend.”