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Extends drop from major barrier towards 1.2850 in USD/CAD Price Analysis
After retreating from a 10-month-old resistance line, the USD/CAD remains in a weak position. A 38.2% Fibonacci retracement attracts bears in front of the 20-DMA support. Multiple obstacles exist around 1.3050, and May's peak adds to the filters on the upside. During Thursday's Asian session, the USD/CAD maintains Fed-inspired losses, remaining under pressure at the intraday low of 1.2862.
The recent decline in the Loonie-U.S. dollar pair may be attributable to the persistent reversal from an upward resistance line beginning in August 2021. The indicated downturn is reinforced by the RSI decline, which strengthens the negative sentiment.
Currently, the price is targeting the 38.2% Fibonacci retracement of October 2021 to May 2022 at 1.2775. However, the 1.2800-level may provide an interim stop.
Should USD/CAD bears maintain control beyond 1.2775, the 20-day moving average (DMA) support at 1.2730 might be tested.
To remember USD/CAD purchasers, the aforementioned resistance level, at 1.2985 as of press time, must be overcome by recovery advances.
However, the psychological magnet around 1.3000 and numerous milestones recorded in May at 1.3050 might challenge the rising momentum prior to testing the yearly high at 1.3076.
Overall, the USD/CAD pair's decline has more negative potential, but sellers should not anticipate a trend reversal.
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