USD/CAD Price Analysis: Sellers approach 1.2850 inside weekly descending triangle
- USD/CAD fades bounce off six-week low, remains pressured around intraday bottom.
- 200-HMA adds strength to the 1.2925-30 hurdle, MACD favors bears aiming for 1.2800.
- Recovery remains elusive unless crossing 1.3090 resistance level.
USD/CAD holds lower ground near the daily low of 1.2862 during early Wednesday. In doing so, the Loonie pair fades the previous day’s corrective pullback from the lowest levels in six weeks.
That said, the bearish MACD signals also favor the sellers keeping reins by the press time.
With this, the quote is likely to revisit the 1.2822-16 horizontal area comprising the weekly descending triangle’s support line and the recent trough.
It’s worth noting that the USD/CAD pair’s weakness past 1.2816 hinges on the seller’s capacity to keep the quote below the 1.2800 round figure.
On the flip side, recovery moves seem unimpressive below 1.2925-30 resistance confluence, including the 200-HMA and the upper line of the stated triangle.
The USD/CAD run-up beyond 1.2930 enables the buyers to aim for the 1.3000 psychological magnet. However, the mid-July swing low near 1.3090 will be crucial for them to keep reins.
Overall, USD/CAD remains pressured towards refreshing the multi-day low. However, the downside has limited room unless breaking the 1.2800 threshold.
USD/CAD: Hourly chart
Trend: Further weakness expected