- USD/CAD picks up bids around intraday high, consolidates earlier losses.
- Convergence of 100-EMA, monthly falling trend line becomes a tough nut to crack for buyers.
- Eight-day-old ascending support line adds to the downside filters amid bearish MACD.
USD/CAD refreshes intraday high to 1.2078, up 0.10% on a day, during early Friday. In doing so, the Loonie pair trims the previous day’s losses while bouncing off a three-day-old support line.
Although the pair’s recent consolidation is likely to extend, due to the strong nearby support lines and the US dollar strength, bearish MACD and confluence of 100-EMA and a falling trend line from April 30, near 1.2130, should tame the upside moves.
In a case where the USD/CAD buyers cross the 1.2130 hurdle, May 13 top near 1.2200 and the year 2018 bottom close to 1.2250 will be in the spotlight.
Alternatively, a clear downside break of the stated support line near 1.2070 will have another rising trend line from May 18, close to 1.2040, to tackle before targeting the 1.2000 psychological magnet.
To sum up, USD/CAD is for trimming the latest losses but the recovery moves aren’t likely to cross the key hurdles.
USD/CAD four-hour chart
Trend: Further recovery expected
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