- USD/CAD stays pressured near the monthly low, battles three-week-old support line, horizontal area since January 06.
- Yearly bottom adds filter to the downside, MACD signals favor sellers.
USD/CAD drops to 1.2635 in the latest pullback from 1.2649 during Tuesday’s Asian session. In doing so, the loonie pair remains depressed near the lowest since January 21, tested during the late Monday.
While bearish MACD signals join upbeat fundamentals concerning the WTI and the US dollar weakness to favor USD/CAD bears, a descending trend line from January 27 and a six-week-long horizontal area challenge the quote’s further downside.
As a result, fresh selling not only needs a clear downside break of the immediate 1.2635 support line but also need to conquer the 1.2630-25 support zone.
Should the USD/CAD bears dominate past-1.2625, the yearly low of 1.2589 holds the key to the pair’s further south targeting the April 2018 low near 1.2525.
On the flip side, 1.2670 and the 1.2700 threshold can test the quote’s corrective pullback. However, the monthly resistance line and 100-bar SMA, respectively around 1.2745 and 1.2755, will be tough nuts to crack for the USD/CAD bulls.
USD/CAD four-hour chart
Trend: Bearish
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