- USD/CAD consolidates the previous day’s losses around 1.3260.
- Sustained break of short-term key support line, now resistance, dwindling MACD favor sellers.
- 100-bar SMA holds the key to the pair’s rise towards monthly’s high.
USD/CAD takes rounds to 1.3260 during Thursday’s Asian session. In doing so the Loonie buyers catch a breather after the pair broke an ascending trend line from September 04.
The downside move also gets support from the pair’s inability to hold the 100-bar SMA breakout as well as weak MACD signals.
Hence, USD/CAD traders are currently targeting the 200-bar SMA level of 1.3215 ahead of highlighting the 1.3200 threshold on their list.
Meanwhile, a corrective pullback beyond the immediate resistance line, at 1.3275 now, will be tamed by the 100-bar SMA level near 1.3300, if not then the monthly high of 1.3340 will be challenged.
Should USD/CAD bulls keep the reins past-1.3340, the previous month’s peak surrounding 1.3420 will be in the spotlight.
USD/CAD four-hour chart
Trend: Further downside expected
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