USD/CAD Price Analysis: Again eyes weekly resistance line above 1.2800
- USD/CAD holds onto latest rebound from 50-HMA, picks up bids of late.
- Firmer RSI favor buyers to mark another battle with one-week-old descending trend line.
- 200-SMA adds to the upside filters, 1.2780 level acts as extra support.
USD/CAD bounces off 50-HMA to defend the 1.2800 threshold, around 1.2820 during early Wednesday morning in Asia.
The loonie pair crossed the stated HMA the previous day but couldn’t cross a downward sloping resistance line from December 20.
Even so, a firmer RSI line and the quote’s rebound from the immediate moving average keep the buyers hopeful to overcome the 1.2830 hurdle.
Following that, the 200-HMA level of 1.2847 will precede 50% Fibonacci retracement of December 16-20 upside, near 1.2865 to limit short-term advances of USD/CAD.
On the contrary, a downside break of 50-HMA, around 1.2805 at the latest, will aim for the weekly horizontal support zone near 1.2780.
In a case where the USD/CAD sellers keep reins past 1.2780, the mid-month trough surrounding 1.2765 and 1.2715 levels may act as buffers before directing the bears towards the monthly low of 1.2607.
To sum up, USD/CAD prices are likely to recover but the bulls have a bumpy road ahead.
USD/CAD: Hourly chart
Trend: Further recovery expected