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USDCAD bears need to break 1.2455-50 for conviction

Short
FX:USDCAD   U.S. Dollar / Canadian Dollar
USDCAD struggles to extend the previous day’s rebound during early Friday. Inability to rise joins downbeat MACD and sluggish RSI to keep sellers hopeful. However, a convergence of 50-day and 100-EMA surrounding 1.2455-50 becomes a tough nut crack for the pair sellers. On an immediate basis, a daily closing below the 1.2500 threshold becomes necessary to confirm the pair’s short-term weakness. It’s worth noting that July 30 low near 1.2420 acts as an extra filter before directing the bears towards the previous month’s bottom surrounding 1.2300.

On the flip side, USDCAD bulls remain directed towards a short-term falling trend line from July 23, near 1.2585, during further recovery. Also acting as the short-term hurdles are multiple tops marked since late July between 1.2590 and 1.2610. Should the pair buyers remain dominant above 1.2610, July’s top of 1.2807 and the yearly peak surrounding 1.2880 will be the key to follow.

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