- USD / CAD is trying to bounce back towards the 1.2600 level.
- The bulls face rejection near the downtrend line.
- A positive MACD leans in favor of a bullish move.
The USD / CAD pair is consolidating near the 1.2580 region during the European session on Tuesday, moving within a tight trading range between 1.2580-1.2555.
At the time of writing, the USD / CAD is trading at 1.2586, up 0.19% on the day.
On the four-hour chart, the price is facing a rejection near the downtrend line extending from Wednesday’s highs near the 1.2635 area. The pair is comfortably holding above the 50 SMA located at 1.2565 with a bullish bias.
The MACD indicator is above the midline, after taking a cross to the upside, and favors the bulls. A sustained USD / CAD move above the downtrend line could generate momentum towards the 1.2620 horizontal resistance zone.
The bulls would look to target the March 30 highs near the 1.2650 area, and the next stop could be seen near the 1.2675 horizontal resistance zone.
On the other hand, looking down, the bears could test the 50-period SMA at 1.2560. A breakout of this level would open the doors to the 1.2520 and 1.2480 horizontal support areas.
USD / CAD 4-hour chart
USD / CAD additional levels
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