USD/CAD Price Analysis: Retreats towards previous resistance below 1.2900

  • USD/CAD extends pullback from 11-week high, dashes four-day winning streak.
  • Bullish MACD signals, nearby key resistance lines keep buyers hopeful.
  • 200-SMA acts as the key support, bulls eye December 2021 peak.

USD/CAD remains on the back foot around an intraday low of 1.2867, printing the first daily loss in five heading into Wednesday’s European session.

In doing so, the Loonie pair drops towards the previous resistance line from late December as it reversed from the 11-week top.

However, bullish MACD signals and the quote’s sustained trading beyond the resistance-turned-support, around 1.2860 by the press time, favor USD/CAD buyers.

Even if the quote drops below 1.2860, an upward sloping trend line from March and the 200-SMA, respectively around 1.2775 and 1.2715, will challenge the pair bears.

Alternatively, USD/CAD buyers need to conquer the 1.2900 round figure to retake control.

Following that, highs marked during December 2021 and 2020, close to 1.2960-65, will be crucial to watch as it holds doors for the pair’s run-up beyond the 1.3000 psychological magnet.

USD/CAD: Four-hour chart

Trend: Further upside expected

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