USD/CAD Price Analysis: Bears approach 200-DMA, nine-month-old support
- USD/CAD remains pressured for the fourth consecutive day, eyes key supports.
- Bearish MACD, sustained break of 50 and 100-DMA favor sellers.
- Corrective pullback needs validation from 1.2700 to convince buyers.
USD/CAD sellers attack intraday low surrounding 1.2615 during four-day downtrend amid Friday’s Asian session.
In doing so, the Loonie pair justifies the clear downside break of 50-DMA and 100-DMA, as well as the bearish MACD signals.
However, the 200-DMA and an upward sloping support line from June 2021, respectively around 1.2605 and 1.2585, will challenge the pair’s further downside.
In a case where the USD/CAD bears manage to conquer the 1.2585 support, the pair becomes vulnerable to revisit January’s low of 1.2450.
Alternatively, a convergence of the 50-DMA and 100-DMA, around 1.2685-90, restricts short-term upside moves of the USD/CAD prices.
Following that, the pair buyers will need validation from the 1.2700 threshold ahead of targeting the tops marked during September 2021 and so far in March 2022, around 1.2900.
Overall, USD/CAD is near to the key support levels, a break of which will magnify the bearish bias for the pair.
USD/CAD: Daily chart
Trend: Further weakness 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.
