USD/CAD Price Analysis: Bounces off three-week-old support, seesaws around 1.2700
|- USD/CAD rebounds from weekly low after three-day downtrend.
- MACD signals don’t favor bulls, 1.2625 becomes the key support.
- Recovery remains elusive below six-week-old resistance line.
USD/CAD licks its wounds around the weekly bottom, recently recovering to 1.2690 during Thursday’s Asian session.
In doing so, the quote portrays a corrective pullback from an upward sloping support line from January 26.
However, the MACD conditions aren’t supporting rebound, which in turn challenge the buyers until the quote crosses a six-week-long resistance line, near 1.2780 by the press time.
During the rise, the 1.2750 level may act as an intermediate halt whereas January’s peak surrounding 1.2815 will act as an extra filter to the north.
On the contrary, a downside break of the stated immediate support line, near 1.2670, isn’t a green card for the USD/CAD sellers as a convergence of the 100-DMA and 50% Fibonacci retracement (Fibo.) of October-December 2021 upside will be a tough nut to crack for the pair bears around 1.2625.
Also acting as strong downside support is the 61.8% Fibo. and the 200-DMA, respectively around 1.2545 and 1.2538 by the press time.
USD/CAD: Daily chart
Trend: Sideways
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