USD/CAD Price Analysis: Bears look to October 2018 low on pullback from previous support
|- USD/CAD renews downside momentum after reversing from 12-day-old resistance line, previous support.
- Bearish MACD directs sellers towards 1.5-month-long support line with October 2018 bottom acting as immediate rest-point.
- Nine-day-old falling trend line adds to the immediate upside barrier.
USD/CAD drops to 1.2860 during the early Friday morning in Asia. In doing so, the quote trades near the lowest since October 3, 2018, flashed on Thursday.
The pair recently bounced off the multi-day low of 1.2852 before stepping back from the previous support line stretched since November 18, near 1.2880 now.
Failures to cross the immediate resistance line join bearish MACD to direct USD/CAD sellers towards the October 2018 low near 1.2780 while the 1.2800 round-figure can offer an intermediate halt during the south-run.
It should, however, be noted that the pair’s inability to bounce off 1.2780 will make it vulnerable to drop towards a falling trend line from October 21, currently around 1.2720.
Meanwhile, an upside clearance of the aforementioned immediate resistance line, at 1.2880 now, will trigger a fresh recovery wave targeting another short-term trend line resistance, presently near 1.2950.
USD/CAD four-hour chart
Trend: Bearish
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