USD/CAD Price Analysis: 100-HMA, weekly support probe bears above 1.2800
|- USD/CAD struggles to defend bounce off 100-HMA, four-day-old support line.
- Sluggish MACD, steady RSI joins lower-high to keep sellers hopeful.
- Descending trend line from July 26 challenge buyers.
USD/CAD remains lackluster at around 1.2850, struggling to extend the previous day’s pullback from the weekly top, during Thursday’s Asian session.
That said, recent lower highs and steady RSI (14) line joins sluggish MACD signals, mostly bearish, appear to keep sellers hopeful.
However, a clear downside break of the 100-HMA and an upward sloping trend line from Monday, respectively around 1.2835 and 1.2830, restricts immediate USD/CAD downside moves.
Following that, the 1.2800 threshold and the double-bottom marked on July 29, near 1.2790, could challenge the pair’s downside before directing it to the two-month low flashed on Monday, at 1.2767.
Meanwhile, recovery moves need validation from the 50% and 61.8% Fibonacci retracement level of July 25 to August 01 moves, near 1.2860 and 1.2880 in that order.
Even so, a downward sloping trend line from July 26, close to 1.2890, quickly followed by the 1.2900 round figure, will challenge the Loonie pair buyers.
Overall, USD/CAD remains sidelined as buyers retreat ahead of the key US/Canada jobs report for July, up for publishing on Friday.
USD/CAD: Hourly chart
Trend: Further weakness expected
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