USD/CAD Price Analysis: Fades bounce off fortnight-old support, 100-SMA
- USD/CAD struggles to keep the late Wednesday’s corrective pullback.
- Bearish MACD signals, failures to stay beyond short-term key supports keep sellers hopeful.
- Monthly descending trend line restricts immediate upside.
USD/CAD prints mild losses around 1.2730 on failure to keep the latest rebound during Thursday’s Asian session.
The Loonie pair refreshed weekly low the previous day before reversing from 1.2681. The rebound portrays the quote’s another U-turn from a two-week-old rising trend line and 100-SMA.
It should be noted, however, that the bearish MACD signals join the recently sluggish moves to favor sellers eyeing another attempt to break the stated SMA and support line, respectively near 1.2715 and 1.2695.
Following that, the recent lows near 1.2680 and the 200-SMA level of 1.2655 will entertain the USD/CAD bears before the monthly bottom of 1.2636.
Alternatively, further upside needs validation from the one-month-long resistance line, near 1.2765 at the latest.
Following that, a run-up towards the 1.2800 threshold and January’s peak surrounding 1.2815 can’t be ruled out.
Though, 1.2850 and the 1.2900 round-figure may test USD/CAD bulls after 1.2800.
USD/CAD: Four-hour 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.
