- USD/CAD refreshes intraday low, extends the previous day’s bearish bias.
- Weekly falling trend line, monthly horizontal hurdle restrict short-term buying.
- May 2015 low will lure bears following 1.2000 breakdown.
USD/CAD remains on the back foot, down 0.05% around intraday low of 1.2030, amid Thursday’s Asian session. The loonie pair took a U-turn from 1.2091 the previous day while defying the early week’s bounce off the lowest levels since May 2015.
Given the bearish MACD conditions and sustained trading below the weekly descending resistance line, USD/CAD is likely to mark another attempt in breaking the 1.2000 psychological magnet.
While RSI backs the odds of a bounce off the 1.2000 threshold, any further downside won’t hesitate to challenge the year 2015 low near 1.1920.
On the flip side, the corrective pullback will aim for the stated immediate trend line resistance near 1.2070 before targeting the 1.2100 round figure.
However, any upside past 1.2100 needs strong bullish support to cross the key horizontal line, stretched from early May, around 1.2140-45.
Overall, USD/CAD remains on the southward trajectory but the downside will be a bumpy one.
USD/CAD four-hour chart
Trend: Bearish
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