USD/CAD Price Analysis: Multi-month-old horizontal support question bears above 1.3300

• USD/CAD struggles to extend downside near the lowest since early-March.
• Bearish MACD confronts a horizontal area comprising multiple highs and lows marked since February.
• 200-day SMA becomes the key upside barrier, 1.3200 could lure the sellers.

USD/CAD remains mostly inactive around 1.3335 amid the initial Asian session on Thursday. The loonie pair slumped to the fresh lows since March 02, 2020 the previous day. However, the key horizontal support area around 1.3330-15 limits the quote’s additional downside.

Even so, MACD signals are still in the favor of the bears, which in turn increases the odds of the pair’s drop to February month’s low near 1.3200 on a clear south-run past-1.3315.

During the quote’s extended weakness below 1.3200, January 23 low of 1.3170 and January 09 top surrounding 1.3100 will gain market attention ahead of 1.3000 psychological magnet.

Alternatively, Friday’s top near 1.3455 acts as an immediate upside barrier, a break of which can trigger fresh recovery moves towards a 200-day SMA level of 1.3521.

Though, bulls will remain cautious unless the energy benchmark provides a daily close beyond 1.35821, which in turn will highlight 61.8% Fibonacci retracement level of the pair’s upside from December 30, 2019 to March 19, 2020, around 1.3610.

USD/CAD daily chart

Trend: Pullback expected