USD/CAD Price Analysis: Directs short-term support break towards 100-SMA

• USD/CAD remains pressured around intraday low, keeps Friday’s trend line breakdown.
• Bearish MACD favor sellers, monthly support line adds to the downside filters.

USD/CAD extends pullback from the two-month top, flashed last week, despite the recent bounce off intraday low of 1.2289 to 1.2296 during early Monday.

In doing so, the Loonie pair remains below a two-week-old support line, now resistance, amid bearish MACD signals.

Hence, the pair sellers aim for a 100-SMA level of 1.2225 as a nearby target ahead of aiming for an ascending support line from June 01, near 1.2170.

It’s worth noting a horizontal area comprising multiple levels marked since June 04, near 1.2130-25, will test the USD/CAD bears past 1.2170.

Meanwhile, corrective pullback needs to stay beyond the previous support line, around 1.2300, before printing a recovery towards 1.2340 and the 1.2385-90 resistances.

In a case where the USD/CAD bulls keep reins above 1.2390, the 1.2400 threshold will act as a validation point to the rally targeting the monthly high near 1.2485-90.

USD/CAD four-hour chart

Trend: Further weakness expected