Bears keep the reins below 1.2740

USD/CAD remains depressed below key resistance confluence amid bearish MACD.
Multiple lows marked since early January restricts immediate downside.
Two-month-old falling trend line adds to the upside filters.

USD/CAD holds lower ground near 1.2686 amid the early Asian morning on Monday. In doing so, the loonie pair fails to extend Friday’s mildly positive performance while staying below a convergence of the 21-day SMA and the monthly resistance line.

With the bearish MACD joining the pair’s sustained trading below the key resistance confluence, USD/CAD bears should remain hopeful.

In doing so, a horizontal area comprising the lows marked since January 05, around 1.2655-60, can become a short-term target for the sellers.

However, a six-week-long region including multiple troughs from January 06 near 1.2630-25 could test the USD/CAD south-run.

Meanwhile, the 1.2700 threshold guards the quote’s immediate upside ahead of the 1.2740 resistance confluence. Also challenging the USD/CAD bulls is the descending trend line from December 21, at 1.2845 now.

To sum up, USD/CAD is likely to remain depressed but multiple supports stand tall to offer a bumpy road to the south.

USD/CAD daily chart

Trend: Bearish