USD/CAD Price Analysis: Strong resistance near 1.2750 keeps buyers nervous

  • USD/CAD remains pressured near 1.2750  in the Asian session on Thursday.
  • Additional gains envisioned for pair if price breaks 1.2750.
  • The momentum oscillator holds onto the overbought zone with a neutral stance.

USD/CAD trades with a cautious tone on Thursday in the early Asian trading hours. The pair confides in a narrow trade band with no meaningful traction. At the time of writing, USD/CAD is trading at 1.2746, down 0.06% for the day.

USD/CAD daily chart

On the daily chart, USD/CAD has been consolidating in the range of 1.2600 and 1.2750 for the past three-month. The descending trendline from the high of 1.2949 made on August 20 acts as a strong barrier for the bulls. If the price sustains below the session’s low, it could record a further fall toward the psychological 1.2700 mark.

Furthermore, a daily close below the mentioned level would open the gates for the 1.2650 horizontal support level followed by the low made on Tuesday at 1.2593.

Alternatively, the Moving Average Convergence Divergence(MACD) indicator holds onto the overbought zone with a neutral outlook. Any uptick in the MACD would trigger buying pressure for the pair. In that case, the upside targets would emerge at the 1.2800 and the 1.2850 horizontal resistance zones. Furthermore, a successful break of the bearish sloping line could mean the possibility of the 1.2900 horizontal resistance level.

USD/CAD additional levels