USD/CAD Price Analysis: Bounces off weekly low to defy pullback from key resistance

• USD/CAD consolidates recent losses near the week’s low.
• Bullish MACD suggests another attempt to cross seven-week-old resistance line.
• 50-day SMA adds to the upside filter, bears have bumpy road below 1.2700.

USD/CAD rises to 1.2700 during Wednesday’s Asian session. In doing so, the loonie pair takes a U-turn from the week’s bottom. However, the quote stays below a downward sloping trend line from November 11 while maintaining its pullback marked the previous day.

With the MACD signals flashing green light, USD/CAD is likely to again confront an 11-week-old resistance line, at 1.2737 now. Though, a 50-day SMA near 1.2805 adds to the upside filters.

Should the USD/CAD prices rise beyond 1.2805, the monthly high of 1.2835 and the late December top surrounding 1.2835-40 will be in the spotlight afterward.

Meanwhile, a horizontal area comprising multiple lows marked since January 06, between 1.2625-30, will act as immediate support during the USD/CAD pair’s fresh downside.

Also acting as the key support will be the monthly low of 1.2589 as well as the April 2018 low near 1.2525.

USD/CAD daily chart

Trend: Further recovery expected