- USD/CAD holds lower ground after dropping the most in two weeks.
- Sustained trading below short-term key EMA, bearish MACD favor sellers.
- Bulls have multiple hurdles to tackle before retaking the controls.
USD/CAD pokes intraday high of 1.2067, around 1.2065 by the press time, during early Friday. In doing so, the Loonie pair stays inside a choppy range around 1.2050-70, established after the previous day’s pullback from 10-day EMA.
Given the bearish MACD and the pair’s sustained trading below 10-day EMA since late April, USD/CAD sellers can target the weekly low, also the lowest level since May 2015, around 1.2015.
However, the pair’s further downside will be tested by the 1.2000 psychological magnet and May 2015 low of 1.1920.
Though, any further downside past-1.1920 will be tested by a one-month-old previous resistance line bear 1.1915.
Meanwhile, a daily closing beyond the 10-day EMA level of 1.2115 will trigger recovery moves targeting the previous week’s top surrounding 1.2200.
Should USD/CAD bulls manage to keep the reins beyond 1.2200, April lows near 1.2265 will be in the spotlight.
USD/CAD daily chart
Trend: Bearish