USD/CAD Price Analysis: Prints mild losses around 1.2650 on immediate support break
|- USD/CAD markets heaviest losses in one week, fades bounce off intraday low.
- Bearish MACD, sustained break of three-day-old support line directs bears toward 200-HMA.
- Descending trend line from Friday adds to the upside barriers.
USD/CAD remains depressed near 1.2650, down 0.21% intraday, after breaking an upward sloping trend line from the last Thursday during early Tuesday’s Asian session.
Although the bearish MACD cooperates with the trend line breakdown to keep the sellers hopeful, the 200-HMA level of 1.2638 seems to probe the pair’s further downside.
Should the USD/CAD bears take clues from the recent US dollar weakness, in contrast to the WTI strength, the quote may not only have to break the 1.2600 threshold but also refresh the monthly low of 1.2575 before revisiting the multi-month low marked in February around 1.2470.
On the flip side, corrective pullback beyond the previous support line, at 1.2665 now, may fizzle to cross a short-term resistance line near 1.2680, which if crossed will eye the monthly peak surrounding 1.2740.
Overall, USD/CAD stays bearish while the latest breakdown of the support line adds favor to the sellers.
USD/CAD hourly chart
Trend: Bearish
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