- USD/CAD takes the bids to refresh intraday high, snaps two-day downtrend.
- Bearish MACD, 61.8% Fibonacci retracement level challenge the recovery moves.
- Convergence of 200-SMA, monthly support line restricts immediate downside.
USD/CAD consolidates weekly losses around 1.2613, up 0.20% intraday during early Wednesday.
In doing so, the Loonie pair bounces off the key support confluence near 1.2580, comprising 200-SMA and an ascending trend line from July 30, to register the first daily gains in three.
It should be noted, however, that the bearish MACD and 61.8% Fibonacci retracement level of July 30 to August 20 upside, around 1.2625, challenges the pair’s immediate upside.
Though, sustained trading beyond 1.2625 will need a minor check near 1.2650 before extending the rebound to cross the 1.2800 hurdle and visit the last week’s levels.
Alternatively, a downside break of the 1.2580 support confluence will aim for the 1.2500 round figure ahead of the monthly low near 1.2455.
Overall, USD/CAD bulls can stay hopeful of revisiting the 1.2800 area should the quote stays above 1.2580.
USD/CAD: Four-hour chart
Trend: Further recovery expected