- USD/CAD attempts to bounce toward the 1.2600 mark.
- Bulls face rejection near the descending trend line.
- Positive MACD tilts in favor of an upside move.
The USD/CAD pair is consolidating near the 1.2580 region in the European session, moving in a narrow trade range band of 1.2580-55.
At the time of writing, USD/CAD is trading at 1.2579, up 0.14% on the day.
USD/CAD: Four-hour chart
On the four-hour chart, the price faces rejection near the downward slope line extending from Wednesday’s highs near the 1.2635 area. The pair is comfortably placed above the 50-hour SMA placed at 1.2565 with an upward bias.
The Moving Average Convergence Divergence (MACD) oscillator reads above the midline, after giving a bullish crossover, and favors bulls. A sustained move above the descending trendline could give an up thrust toward the 1.2620 horizontal resistance zone.
Bulls would further look up to March 30 highs near the 1.2650 area, and the next stoppage could be marked near the 1.2675 horizontal resistance zone.
On the flip side, moving downward, bears could test the 50-hour SMA placed at 1.2560. A breach of the SMA would open the doors toward the 1.2520 and 1.2480 horizontal support areas.
USD/CAD: Additional levels
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