- USD / CAD consolidates corrective recovery after a multi-month low in a calm session.
- MACD bullish, trades supported above 200 HMA favor buyers.
USD / CAD drops to 1.2853 early Monday morning in Asia. In doing so, the Loonie pair falls below 100-HMA while remaining below a downtrend line from December 21st. It should be noted that the quotation fell to the lowest since April 2018 in mid-December before rebounding from 1.2688 to 1.2957 from December 15th. to 21.
However, the ability of the USD / CAD bulls to dominate after 200 HMA, in a bullish MACD, suggests a further rise in the pair.
Therefore, buyers of the pair would have to face 100-HMA and the declared resistance line around 1.2865 and 1.2890, respectively, to justify the short-term strength of momentum.
It should be noted that the ability of the quote to cross 1.2890 needs to be validated from the 1.2900 threshold before driving the USD / CAD price towards the monthly peak near 1.2960.
Meanwhile, the 200-HMA and 61.8% Fibonacci retracement from Dec. 15-21 on the upside, near 1.2800 and 1.2790 in that order, may challenge USD / CAD sellers.
If the pullback lasts longer below 1.2790, the round figure of 1.2700 may offer an intermediate stop before pointing to the multi-year low near 1.2690.
USD / CAD hourly chart
Trend: continuation of the expected rise