USD/CAD Price Analysis: Overbought RSI probes bulls above 1.2600, focus on BOC
- USD/CAD consolidates recent gains above key technical supports ahead of the BOC.
- RSI conditions hint at a pullback but the key SMAs and Fibonacci retracements challenge bears.
USD/CAD edges higher around 1.2640, down 0.05% intraday, ahead of Wednesday’s European session.
The loonie pair jumped the most in three weeks the previous day while crossing the 100 and 200-SMA levels, not to forget 61.8% Fibonacci retracement (Fibo) of July 30 to August 20 upside.
However, the run-up pushes the RSI line to overbought territory, which in turn triggered the latest pullback of the USD/CAD prices.
Even so, the quote remains beyond the stated key SMAs and Fibo levels, signaling the bullish bias ahead of the Bank of Canada (BOC) monetary policy meeting.
That said, the USD/CAD buyers aim for the late August swing highs surrounding 1.2710 during the fresh upside, as an immediate target, but any further advances need a strong push to the north to visit a 23.6% Fibonacci retracement level near 1.2825.
Meanwhile, 100-SMA offers nearby support to the pair around 1.2630 before the 61.8% Fibo and 200-SMA, respectively around 1.2320 and 1.2580, challenge the USD/CAD bears.
Read: USD/CAD stays firmer around 1.2650 on weaker oil, firmer USD theory, BOC eyed
USD/CAD: Four-hour chart
Trend: Recovery remains intact.