USD/CAD Price Analysis: Pullback from three-week top eyes 1.2700 retest
|- USD/CAD snaps three-day uptrend, refreshes intraday low amid sluggish session.
- Failures to cross two-month-old horizontal hurdle battles bullish MACD above 50-DMA to keep buyers hopeful.
- 50-% Fibonacci retracement, 200-DMA act as strong supports, multiple tops marked during late 2021 guard immediate upside.
USD/CAD consolidates recent losses around 1.2735, down 0.30% intraday while reversing from a three-week high on early Monday morning in Europe.
In doing so, the Loonie pair takes a U-turn from a two-month-old horizontal area around 1.2780-85 but bullish MACD signals keep sellers unconvinced around the 50-DMA level of 1.2715.
Even if the USD/CAD bears manage to conquer the 1.2715 level, 50% Fibonacci retracement (Fibo.) of October-December advances, near 1.2630, will be in focus as a break of which will direct the pair towards the 200-DMA level of 1.2507.
On the contrary, a clear upside break of 1.2785 immediate hurdle will need validation from the monthly high of 1.2813 to recall the USD/CAD bulls.
Following that, multiple tops marked during late 2021 around 1.2850 and 1.2900 will challenge the pair buyers before directing them to the year 2021 peak of 1.2964.
Overall, USD/CAD bulls take a breather amid a sluggish start to the crucial week.
USD/CAD: Daily chart
Trend: Further weakness expected
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