USD/CAD Price Analysis: Three-week-old resistance probes Wednesday’s doji
|- USD/CAD consolidates the previous day’s drop to fresh multi-month low under 1.2700.
- A change reversal suggesting candlestick formation battles December lows amid bearish MACD.
- 21-day and 10-day SMA add to the upside filters.
USD/CAD takes rounds to 1.2675/70 during Thursday’s Asian trading. The pair dropped to the fresh low since April 2018 before bouncing off 1.2630 and closing around 1.2670 the previous day. In doing so, it formed a Doji candlestick near the multi-month low, which in turn suggests a corrective pullback.
Though, USD/CAD buyers need to successfully cross lows marked during December 15 and 17, around 1.2690, to firm up the grip and justify the candlestick formation.
Also likely to challenge the upside momentum is the 1.2700 threshold and short-term SMAs near 1.2755 and 1.2770.
On the contrary, a downside break of the latest low of 1.2630 will eye the 1.2600 round-figure for immediate relief of the USD/CAD sellers before directing them to April 2018 bottom surrounding 1.2530/25.
Overall, USD/CAD is likely to remain pressured but Wednesday’s Doji formation teases short-term corrective pullback in prices.
USD/CAD daily chart
Trend: Pullback expected
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