USD/CAD Price Analysis: Steps back from 21-DMA to snap four-day uptrend
|- USD/CAD takes offers to refresh intraday low, drops for the first time in last five days.
- Bearish MACD, failures to cross key DMAs keep sellers hopeful.
- Two-month-old support line lures bears, 200-DMA adds to upside filters.
USD/CAD sellers return to the table, after a four-day trip to the north, as European traders prepare for Thursday’s bell. That said, the Loonie pair drops 0.11% to 1.2525 by the press time.
In doing so, the quote reverses from 21-DMA amid bearish MACD, suggesting further weakness towards the 1.2500 threshold.
However, an ascending support line from June 01, near 1.2460, could challenge the USD/CAD bears afterward, a break of which will direct the quote to monthly horizontal support near 1.2420–25.
It’s worth noting that June’s top surrounding 1.2485 adds to the supports whereas the last month’s low near 1.2300 could lure the pair sellers after breaking 1.2420.
Meanwhile, a clear break of 21-DMA level of 1.2547 will recall short-term USD/CAD buyers targeting the 200-DMA level of 1.2583.
Though, the pair’s upside past 1.2585 will be challenged by late July’s top near the 1.2600 round figure before highlighting 1.2685 and the previous month’s top around 1.2800 for the bulls.
USD/CAD: Daily chart
Trend: Pullback expected
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