USD/CAD eases from intraday high amid bearish MACD.
Failures to stay strong beyond 1.2800 suggest sellers are preparing for entry.
Descending trend line from last Thursday guards immediate upside.
USD/CAD drops to 1.2800 in the latest swing from the day’s high amid Monday’s Asian session. Even so, the quote stays above an ascending trend line from January 21 while also flashing mild gains by press time.
Although recent pullback and multiple failures to remain positive above 1.2800 favor USD/CAD sellers, coupled with the bearish MACD, stated support line and 200-bar SMA, respectively around 1.2765 and 1.2750, will restrict immediate downside.
In a case where the USD/CAD bears dominate past-1.2750, last week’s bottom around 1.2685 and the previous month’s low near 1.2589 will become their favorites.
Meanwhile, sustained trading beyond 1.2800 needs to break an immediate descending trend line resistance around 1.2870 before challenging January 2021 top near 1.2880.
Should the USD/CAD buyers manage to clear the 1.2880 hurdle, December’s peak surrounding 1.3010 can return to the charts.
USD/CAD four-hour chart