USD/CAD Price Analysis: Defensive above 50-SMA, two-week-old support line
|- USD/CAD struggles to extend bounce off key supports.
- Weekly horizontal resistance guards immediate upside amid steady RSI.
- Further losses envisioned amid hesitant recovery, bumpy road to the north.
USD/CAD picks up bids to 1.2325 amid a quiet Asian session on Friday. In doing so, the major currency pair defends the previous day’s bounce off 50-SMA and an ascending support line from June 11 amid a steady RSI line.
However, the quote’s failure to cross the immediate hurdle, a weekly horizontal line near 1.2345, followed by multiple resistances to the north, keeps USD/CAD buyers worried.
Hence, the pair sellers keep searching for the clues to fresh entries and can cheer a downside break of 1.2295 by targeting the mid-June tops near the 1.2200 threshold.
It’s worth noting that the monthly horizontal region surrounding 1.2130-20 could test the USD/CAD bears past 1.2200.
Meanwhile, an upside clearance of 1.2345 isn’t a green pass to the USD/CAD bulls as multiple stops around 1.2390 and 1.2430 can challenge the run-up ahead of the monthly peak near 1.2490.
USD/CAD four-hour chart
Trend: Pullback expected
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