After easing off a short-term resistance line, the USD/CAD has remained parked.
Although the MACD has loosened its bullish bias, the 50-EMA and ascending support line from June 10 limit immediate downside.
As the European session opens on Thursday, USD/CAD bulls aim for the 1.2400 level, up 0.05 percent intraday. However, a sell-off in Canadian markets and a weekly resistance line challenge the pair’s buyers, despite the MACD’s declining bullish tilt.
Nonetheless, the USD/CAD bulls are favored by the quote’s continuous trading above the 50-EMA and a three-week-old rising trend line. As a result, a move higher to the nearby resistance line near 1.2430 appears likely.
The 1.2435 and June’s high at 1.2490 will test the pair’s progress past 1.2430 before it challenges the 1.2500 round number.
On the other hand, if the 1.2340 support confluence is broken to the downside, short-term bears will target the 1.2300 mark and the 1.2260 level, which has seen numerous lows since mid-June.
If the USD/CAD bears maintain control above 1.2260, the early June peak near 1.2130 should reappear on the chart.
Bullish trend/n
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