USD/CAD Price Analysis: Sellers attack 13-day-old support near 1.2550
- USD/CAD consolidates weekly losses inside the key SMA envelope but stays depressed.
- RSI conditions favor bearish momentum towards early month top.
- Tuesday’s swing low adds to the upside filters.
USD/CAD keeps pullback from 50-SMA around 1.2560 during a lackluster Friday morning in Asia. In doing so, the major currency pair remains between the 50-SMA and 100-SMA as bears battle an upward sloping trend line from July 06.
As the RSI line holds lower ground, the latest weakness in prices may prevail for a bit longer.
However, a clear downside break of the nearby support line and 100-SMA, respectively around 1.2550 and 1.2515, becomes necessary for the USD/CAD sellers.
Following that, the July-start swing high near 1.2450 will be on the bears’ radars.
Meanwhile, the mid-month peak close to 1.2615 will challenge the upside break of 50-SMA, near 1.2600.
Also acting as a barrier to the north is Tuesday’s bottom close to 1.2675 and Wednesday’s top of 1.2730, a sustained break of which could refresh the monthly high of 1.2807.
USD/CAD: Four-hour chart
Trend: Further weakness expected
via FXStreet News https://ift.tt/3tYkUTd
July 22, 2021 at 05:31PM