USD/CAD Price Analysis: On the way to 200-DMA on breaking 10-week-old support
- USD/CAD remains pressured around the lowest level in over two weeks.
- Downside break of the key support line, bearish MACD favor sellers.
- 200-DMA offers a tough nut to crack for the sellers.
USD/CAD remains on the back foot around 1.2550, after posting the heaviest daily fall in the week, during the early Friday morning in Asia.
In doing so, the Loonie pair keeps the previous day’s downside break of an ascending trend line from June 23.
Other than the trend line breakdown, bearish MACD also directs USD/CAD sellers towards the 200-DMA level of 1.2533.
However, any further downside needs to successfully conquer the 1.2500 threshold before visiting the late July trough surrounding the 1.2420.
On the contrary, a surprise rebound will have to post a daily closing past the support-turned-resistance line of 1.2580.
Even so, the last Friday’s top near 1.2710 and July’s high near 1.2810 will challenge the USD/CAD bulls afterward.
Overall, USD/CAD bears are back to the table but the battle isn’t over.
USD/CAD: Daily chart
Trend: Further weakness expected