USD/CAD Price Analysis: Battles key SMA support around mid-1.2700s

• USD/CAD stays depressed around monthly low despite bouncing off 1.2754.
• Sellers eye downside break of 1.5700 should they manage to conquer 100, 200-bar SMAs.
• Descending resistance line from January 28 challenges the bulls’ entry.

USD/CAD remains depressed around 1.2755 during Monday’s Asian session. In doing so, the loonie pair struggles with the key SMAs near the lowest since January 29.

It should, however, be noted that the bearish MACD and a sustained downside break of one-week-old support line, now resistance, keep the USD/CAD sellers hopeful of smashing the 1.2750-60 confluence.

Following that, a two-wee long horizontal area near 1.2685 will be the key support to watch before highlighting January’s multi-month low of 1.2589.

Meanwhile, a corrective pullback from the current levels may try to regain the previous support line, at 1.2786 now, before targeting the 1.2800 threshold.

If at all the USD/CAD buyers manage to cross the 1.2800 round-figure, a short-term resistance line near 1.2840 will be important.

USD/CAD four-hour chart

Trend: Further weakness expected