USD/CAD Price Analysis: 10-week-old support line, 200-DMA challenge bears

• USD/CAD remains pressured around two-week low, down for three consecutive days.
• Bearish MACD hints as further downside but key support line and DMA challenges bears.
• Bulls have multiple hurdles to cross for return.

USD/CAD bears attack 1.2600, refreshing intraday low, heading into Tuesday’s European session. In doing so, the Loonie pair remains depressed after declining to the lowest since August 17 during the previous two-day downtrend.

Given the bearish MACD signals, USD/CAD is likely to remain pressured. However, an ascending support line from late June and 200-DMA, respectively around 1.2580 and 1.2540, become crucial levels to watch.

Should USD/CAD bears keep reins past 1.2540, odds of a further downturn towards July 30 lows near 1.2420 can’t be ruled out.

On the contrary, the corrective pullback will have to cross Friday’s top surrounding 1.2710 to convince buyers for another battle with a six-week-old horizontal resistance near 1.2810.

Although USD/CAD prices are likely to ease from 1.2810, any more upside won’t hesitate to challenge the yearly top, marked early in August, close to 1.2950.

To sum up, USD/CAD teases bears who await confirmation.

USD/CAD: Daily chart

Trend: Further weakness expected