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  • USD/CAD drops after taking a U-turn from the key Fibonacci retracement.
  • Bearish MACD keeps favoring the sellers but crucial HMA in focus.
  • Weekly horizontal support adds a filter to further downside.

USD/CAD declines 0.50% to 1.4010, intraday low of 1.4005, amid the initial Asian session on Friday. The pair earlier reversed from 61.8% Fibonacci retracement of its fall from March 31. Though, 200-HMA restricts the quote’s further downside.

Should the sellers concentrate more on the bearish MACD and break 1.40000 support, a one-week-old horizontal line around 1.3925 will be on their radars.

If at all the USD/CAD prices remain weak below 1.3925, the monthly bottom surrounding 1.3855 will be challenged.

Alternatively, 1.4070 and 50% Fibonacci retracement level near 1.4100 can offer nearby barriers to the pair’s U-turn ahead of 1.4160 figures comprising 61.8% Fibonacci retracement.

Given the bulls’ ability to cross 1.4160, April 05 high near 1.4260 and 1.4300 should be targeted while holding the long positions.

USD/CAD hourly chart

Trend: Pullback expected