- USD/CAD remains pressured around previous resistance, teases intraday low.
- Bearish candlestick, downbeat MACD conditions keep sellers hopeful.
- 61.8% Fibonacci retracement, late July levels add to the upside filters, monthly support line also challenges bears.
USD/CAD stays mildly offered around 1.2615 heading into the European session on Wednesday.
The Loonie pair jumped to the highest since July 21 the previous day after crossing the key horizontal resistance area, now support.
However, a pullback from 1.2650 printed a Gravestone Doji bearish candlestick that joined receding bullish bias of the MACD to direct USD/CAD sellers to the resistance-turned-support.
During the pair’s further weakness, a clear downside break of the 1.2590 level becomes necessary to keep the bears hopeful, which in turn highlights a three-week-old ascending support line, near 1.2525.
On the flip side, the pair’s recovery moves need to refresh the monthly peak, currently around 1.2650, to aim for the 61.8% Fibonacci retracement of July 19–30 downside, near 1.2660, followed by the July 20 swing lows close to 1.2675.
In a case where USD/CAD remains bullish past 1.2675, a horizontal line comprising the late last monthly levels near 1.2730 will be the key become July’s high near 1.2810.
USD/CAD: Four-hour chart
Trend: Further weakness expected