USD/CAD Price Analysis: Corrective pullback targets 1.2110 resistance confluence

• USD/CAD refreshes intraday top during two-day uptrend.
• MACD teases buyers, suggests further upside towards the 10-day EMA, monthly resistance line convergence.
• 1.2000 acts as the key support, descending trend line from March 18 adds to the upside barriers.

USD/CAD takes bids around 1.2080, up 0.08% intraday, during early Monday. In doing so, the Loonie pair rises for the second consecutive day as MACD teases bulls.

It should, however, be noted that the recent uptick needs to cross a confluence of 10-day EMA and a descending resistance line from April 28, around 1.2110, to keep the USD/CAD buyers hopeful.

Even so, the bulls aren’t given a free pass as the May 13 swing top and the previous support line from March 18, near 1.2205, will also challenge the pair’s upside moves.

Meanwhile, 1.2050 and the recent low near 1.2010 can entertain short-term USD/CAD sellers ahead of the 1.2000 psychological magnet.

In a case where USD/CAD drops below 1.2000, the May 2015 low of 1.1920 could return to the chart.

USD/CAD daily chart

Trend: Further recovery expected