The USD/CAD trades sideways after bouncing off an intraday low, reversing Monday’s gains.
Sellers are optimistic due to a bearish MACD and persistent fall below prior support.
Bears are aiming for a five-week-old support line, while a short-term horizontal line adds upside filters.
USD/CAD is trading near 1.2325, down 0.14 percent intraday, after extending a decline from a nearby resistance level, which had previously served as support.
Not only have the pair sellers been able to push past previous supports, but bearish MACD has also allowed them to flirt with the 100-SMA level before press time.
However, the pair’s additional decline is contingent on a breach of the indicated SMA level near 1.2325, which would send USD/CAD prices back to late June swing lows under 1.2250.
An ascending support line from June 01, near 1.2220, however, becomes the key to predicting a change in the current upswing.
A three-week-long resistance near 1.2355, on the other hand, protects the pair’s recovery advances until the market returns its focus to the prior support line near 1.2385.
It’s worth noting that 1.2420 and the monthly top near 1.2450 serve as additional resistance levels to test the upward trend.
More weakness is likely in the future./n
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