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- USD/CAD fades bounce off intraday low, reverses Monday’s gains.
- Bearish MACD, sustained weakness below previous support keeps sellers hopeful.
- Bears aim for five-week-old support line, short-term horizontal line adds to the upside filters.
USD/CAD holds lower ground near 1.2325, down 0.14% intraday, while extending pullback from nearby resistance line, previous support, during early Tuesday.
Not only the failures to regain past the previous supports but bearish MACD also enable the pair sellers to jostle with the 100-SMA level by the press time.
That said, the pair’s further downside depends upon its break of the stated SMA level surrounding 1.2325, which in turn will drag the USD/CAD prices to late June’s swing lows near 1.2250.
However, an ascending support line from June 01, near 1.2220, becomes the key to forecast a shift in the prevailing uptrend.
On the flip side, a three-week-long resistance near 1.2355 guards the pair’s recovery moves before shifting the market attention back to the previous support line near 1.2385.
It’s worth noting that 1.2420 and the monthly top close to 1.2450 act as additional hurdles to probe the upside momentum.
USD/CAD: Four-hour chart
Trend: Further weakness expected