USD/CAD Price Analysis: Bulls remain unconvinced below 1.2865
|- USD/CAD struggles to defend the bounce from weekly low around 10-DMA.
- Steady Momentum line, clear break of two-week-old rising trend line favor sellers.
- Bulls may aim for monthly resistance line beyond 1.2865.
USD/CAD snaps a two-day pullback from the yearly top, up 0.09% intraday despite recently easing to 1.2840 ahead of Thursday’s European session.
Although 10-DMA challenges the Loonie pair’s immediate downside, a sustained break of the ascending trend line from December 08 keeps the USD/CAD sellers hopeful amid a steady Momentum line.
Even if the quote rises past the nearby support-turned-resistance line close to 1.2865, the 1.2900 threshold and the latest peak of 1.2965 may lure the bulls ahead of an ascending resistance line from November 30, near the 1.3000 psychological magnet.
Alternatively, the quote’s fresh weakness will aim for November 23 swing high near 1.2745 before targeting the six-week-old support line near 1.2730.
In a case where USD/CAD bears keep reins past 1.2730, a two-month-long support line, close to 1.2600 will be crucial to watch.
USD/CAD: Daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.