USD/CAD Price Analysis: Downside movement halts below 100-day SMA

• USD/CAD pauses downside movement on Monday following a 100-pips fall on Friday.
• Bulls remain hopeful near 1.2470  a crucial support level.
• Momentum oscillator trades below midline throws caution on aggressive bids.

USD/CAD trades with a cautious tone on the first trading day of the week 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 1.2476, up 0.05% for the day.

USD/CAD daily chart

On the daily chart, after testing the high of 1.2896 on September 20, the USD/CAD pair came under selling pressure. Further, a fall below the 100-day Simple Moving Average (SMA) at 1.2490 also strengthen the prevailing downside momentum. However,  If the price sustains the intraday low, it could move back to the psychological 1.2500 level as the first upside target. Next, USD/CAD bulls would attempt to test the 1.2550 horizontal resistance level.

USD/CAD would then march toward the 1.2600 horizontal resistance level.

Alternatively, the Moving Average Convergence Divergence  (MACD) indicator slips below the midline. Any downtick in the MACD would trigger a fresh round of selling for the pair seeking the first downside target toward the low made at the beginning of August at 1.2453 (August 2) followed by the 1.2400 horizontal support level.

Next, the spot would not feel hesitant to test the 100-day SMA at 1.2370.

USD/CAD additional levels