USD/CAD Price Analysis: Bears keep the reins below five-week-old hurdle, eye 1.2600
- USD/CAD remains depressed while extending pullback from two weeks’ top.
- Sustained trading below key trend line, 200-bar SMA, amid normal RSI, favors bears.
- Horizontal area from late January adds to the upside filters.
USD/CAD drops to 1.2641, down 0.10% intraday, amid the initial Asian session on Tuesday. In doing so, the loonie pair extends the previous day’s downbeat performance while portraying a u-turn from the five-week-old falling trend line as well as declining below 200-bar SMA.
Given the latest downside lacks oversold RSI conditions, the bears still have room for further gains.
As a result, the mid-February lows around the 1.2600 threshold gain attention as the immediate support.
Though, any further weakness will need to break the 1.2580 support before challenging Thursday’s multi-month low near 1.2468.
Meanwhile, the 1.2700 round-figure can offer immediate resistance to the USD/CAD prices ahead of the 200-bar SMA level of 1.2708.
During the quote’s sustained run-up beyond the key SMA, the aforementioned resistance line around 1.2730 and multiple tops and bottoms since January 29, close to 1.2760, will challenge the USD/CAD buyers.
USD/CAD four-hour chart
Trend: Bearish
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.
