USD/CAD Price Analysis: 50-DMA probes recovery moves near 1.2700
- USD/CAD struggles to extend recovery moves from fortnight-long horizontal support.
- Bullish MACD signals keep buyers hopeful to poke the monthly resistance line.
- Convergence of 100-DMA, 50% Fibonacci retracement offers strong support.
USD/CAD buyers flirt with a short-term key hurdle surrounding 1.2700 during Wednesday’s Asian session, following the bounce off a two-week-old horizontal support zone.
A convergence of the 50-DMA and 38.2% Fibonacci retracement (Fibo.) of October-December 2021 upside challenges the USD/CAD pair’s immediate upside around 1.2710.
However, bullish MACD signals and the Loonie pair’s ability to stay beyond 1.2655-50 horizontal area for nearly two weeks keep the buyers hopeful to overcome the immediate hurdle.
Following that, a downward sloping trend line from early January, near 1.2785, will be in focus as a break which will direct USD/CAD bulls towards crossing the 1.2800 threshold.
Meanwhile, a downside break of the 1.2650 support will again highlight the 1.2625-20 support confluence, comprising the 100-DMA and 50% Fibo.
Should the quote’s drop below 1.2620, the mid-January’s swing high near 1.2570 may offer an intermediate halt during the fall targeting the yearly low of 1.2453.
USD/CAD: Daily chart
Trend: Further recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
