USD/CAD Price Analysis: Consolidates losses from multi-month low around mid-1.2600s
|- USD/CAD eases from intraday high after refreshing the lowest levels since April 2018 the previous day.
- Ability to regain above short-term horizontal support, receding bearish bias of MACD favor further short-covering.
- 200-bar SMA, weekly resistance line challenge buyers.
USD/CAD declines to 1.2642 while fading the corrective pullback from a fresh multi-month low during Friday’s Asian trading. Even so, the quote prints 0.08% intraday gains and regains past-12-day-old horizontal support. Additionally, bearish MACD also seems to weaken, which in turn strengthens the odds of further recovery in the quote.
As a result, USD/CAD buyers can target the weekly resistance line, at 1.2690 now, during the further upside.
However, any more rise will have to battle the 1.2700 threshold and 200-bar SMA, currently around 1.2756, to probe the week’s high of 1.2799.
Meanwhile, a downside break of 1.2625 will recall the sellers targeting the April 2018 bottom surrounding 1.2525.
During the fall, the 1.2600 can act as a downside filter whereas the late-February 2018 low near 1.2450 can please the USD/CAD bears afterward.
USD/CAD four-hour chart
Trend: Pullback expected
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