USD/CAD Price Analysis: Bulls flirt with five-month-old hurdle near 1.2450
- USD/CAD seesaws around two-week top, keeps bounce off March’s low.
- Bullish MACD, sustained trading beyond the key supports keep buyers hopeful.
- 50-day EMA, falling trend line from late 2020 add to the trading filters.
USD/CAD remains sidelined around 1.2435-45 during Friday’s Asian session. The loonie pair recovered from the horizontal line comprising March’s bottom the previous day, amid bullish MACD, but the bulls are probed by a downward sloping trend line from late January.
Given the quote’s successful bounce off short-term horizontal support, not to forget the ability to stay beyond 50-day EMA and bullish MACD, the buyers may overcome the 1.2450 immediate hurdle.
However, the same doesn’t change the prevailing downtrend until the quote crosses over a six-month-long resistance line, around 1.2570 by the press time. Also acting as the tough nut to crack for the USD/CAD bulls is April’s top near 1.2655.
On the flip side, a downside break of the stated horizontal support near 1.2360 will direct the short-term sellers to a 50-day EMA level of 1.2285.
Should the USD/CAD bears keep reins past 1.2285, the late June’s low near 1.2250 may act as a validation point for the further weakness towards 1.2150 and the yearly bottom surrounding the 1.2000 psychological magnet.
USD/CAD: Daily chart
Trend: Further upside 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.
