USD/CAD Price Analysis: Bulls struggle to keep reins above 1.2750
|- USD/CAD stays depressed after stepping back from two-month-old resistance line.
- 21-day SMA, previous resistance from late-October restrict immediate downside.
- Bullish MACD, sustained break of key resistance confluence, now support, favor buyers.
USD/CAD eases to 1.2775 during Tuesday’s Asian session. The loonie pair refreshed monthly high the previous day after crossing 21-day SMA and a descending trend line from October 29. However, failure to cross a two-month-long resistance line dragged the quote backward.
Even so, strong support confluence and bullish MACD suggests the USD/CAD bounce off 1.2770, which in turn will again challenge the stated resistance line near 1.2830.
While the 1.2800 round-figure may offer an intermediate halt during the rise, 50-day SMA around 1.2890 and the 1.2900 threshold can question the USD/CAD bulls after the trend line breakout.
Alternatively, a downside break below 1.2770 might not hesitate to revisit the 1.2700 round-figure. Though, the mid-December lows surrounding 1.2690/85 can question USD/CAD sellers afterward.
If at all the quote remains depressed past-1.2685, the multi-month low flashed last Wednesday, near 1.2630, followed by the 1.2600 psychological magnet should return to the charts.
USD/CAD daily chart
Trend: Pullback expected
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