- USD/CAD prints minute losses on Wednesday in the initial Asian session.
- Price face pullback near 1.2900 level tested on Monday.
- More downside for the pair if price breaks 1.2800.
USD/CAD trades with a cautious tone on Wednesday in the early Asian trading hours. The pair confides in a narrow trade band composed of 10-pips movement. At the time of writing, USD/CAD is trading at 1.2814, down 0.04% for the day.
USD/CAD daily chart
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On the daily chart, USD/CAD has been in the continuous uptrend from the lows of 1.2493 made since the beginning of the September series (September 3). USD/CAD bulls exhausted near the 1.2900 level made on Monday.
If the price is sustained below the session’s low, it could test the first downside target at the 23.6% Fibonacci retracement level at 1.2795. A daily close below the mentioned level could drag the price further down at the 1.2750 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator trades above the midline. Any downtick in the MACD would trigger a fresh round of selling seeking the next target at the 50.0% Fibonacci retracement level at 1.2700.
Alternatively, if the price reverses the direction, it could retrace back to the 1.2850 horizontal resistance level. Next, USD/CAD bulls would attempt to recapture the August 20 high at 1.2949.
