USD/CAD Price Analysis: Overbought RSI triggers pullback from five-month top above 1.2700
- USD/CAD consolidates recent gains around the highest levels since February.
- Overbought RSI conditions favor pullback, 200-DMA breakout keeps buyers hopeful.
USD/CAD sellers attack intraday low near 1.2740, down 0.07% on a day, amid Tuesday’s Asian session. The Loonie pair jumped to the highest since early February before stepping back from 1.2807.
The profit-booking moves gain support from overbought RSI conditions to direct intraday sellers toward the 50% Fibonacci retracement of September 2020 to June 2021 downside, around 1.2715.
However, the 200-DMA and multiple tops marked in April, around 1.2620, will challenge the pair’s weakness past 1.2715.
Should USD/CAD fail to bounces off 1.2620, the early month high near 1.2590 and June’s peak of 1.2487 will lure the bears.
Meanwhile, the fresh upside will aim for the previous day’s high of 1.2807 before challenging the 61.8% Fibonacci retracement level near 1.2885.
Also likely to question USD/CAD bulls is the late December high close to 1.2960 and the 1.3000 threshold.
USD/CAD: Daily chart
Trend: Pullback expected