USD/CAD Price Analysis: Pullback remains elusive beyond 1.2885 support confluence

• USD/CAD snaps two-day uptrend, remains pressured inside immediate trading range near two-year high.
• Convergence of monthly support line, previous resistance from mid-June, restricts short-term downside.
• Bulls need to cross two-month-old resistance to retake control.
• Multiple failures to cross immediate hurdle, RSI conditions hint at further weakness.

USD/CAD stays depressed around the intraday low of 1.3012 during the first negative daily performance in three. In doing so, the Loonie pair extends pullback from the upward sloping resistance line from May.

Given the RSI pullback from overbought territory joining the recent profit-booking of the USD/CAD prices, the quote is likely to extend the short-term weakness.

However, a confluence of the one-month-old support line joins descending trend line from June 17 to highlight 1.2885 as the key support. Also acting as a downside filter is the 200-SMA level surrounding 1.2820.

Alternatively, an ascending resistance line from May, near 1.3080, guards the immediate upside of the USD/CAD pair.

Following that, the 1.3100 threshold can act as an additional filter to the north before directing the buyers towards the late November 2020 highs near 1.3170.

Overall, USD/CAD retains its uptrend unless breaking 1.2885 level. However, the short-term pullback can’t be ruled out.

USD/CAD: Four-hour chart

Trend: Limited downside expected