USD/CAD Price Analysis: Bounces off weekly low to defy pullback from key resistance
|- USD/CAD consolidates recent losses near the week’s low.
- Bullish MACD suggests another attempt to cross seven-week-old resistance line.
- 50-day SMA adds to the upside filter, bears have bumpy road below 1.2700.
USD/CAD rises to 1.2700 during Wednesday’s Asian session. In doing so, the loonie pair takes a U-turn from the week’s bottom. However, the quote stays below a downward sloping trend line from November 11 while maintaining its pullback marked the previous day.
With the MACD signals flashing green light, USD/CAD is likely to again confront an 11-week-old resistance line, at 1.2737 now. Though, a 50-day SMA near 1.2805 adds to the upside filters.
Should the USD/CAD prices rise beyond 1.2805, the monthly high of 1.2835 and the late December top surrounding 1.2835-40 will be in the spotlight afterward.
Meanwhile, a horizontal area comprising multiple lows marked since January 06, between 1.2625-30, will act as immediate support during the USD/CAD pair’s fresh downside.
Also acting as the key support will be the monthly low of 1.2589 as well as the April 2018 low near 1.2525.
USD/CAD daily chart
Trend: Further recovery expected
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