USD/CAD Price Analysis: Defensive around 50-DMA, four-month-old support line

• USD/CAD struggles to keep bounce off the key support confluence.
• Bearish MACD favor sellers, ascending trend line from late June adds to downside filters, monthly horizontal line guards recovery moves.

USD/CAD fails to keep the bounce off a two-week low while easing near 1.2630 amid the early Asian session on Tuesday.

In doing so, the Loonie pair justifies bearish MACD as well as sustained trading below a one-month-old horizontal hurdle while challenging a convergence of 50-DMA and an ascending support line from early June.

Even if the quote manages to break the 1.2615-10 near-term key support, a three-month-old ascending trend line near 1.2570 will question the USD/CAD sellers.

Should the pair remains bearish past 1.2570, the monthly low of 1.2493 will probe the downside targeting July’s bottom close to 1.2420.

Meanwhile, corrective pullback needs to cross the stated horizontal resistance around the 1.2700 threshold to aim for the early month’s peak surrounding 1.2760.

It’s worth noting that a clear upside past 1.2760, enables USD/CAD bulls to aim for July’s top near 1.2810, before heading to the yearly peak of 1.2949.

USD/CAD: Daily chart

Trend: Further weakness expected