USD/CAD Price Analysis: Extends bounce off 50-SMA to poke 1.2980 weekly resistance

• USD/CAD picks up bids to refresh intraday high, keeps the previous day’s rebound.
• Bearish MACD signals, short-term horizontal resistance challenge buyers.
• One-week-old support line also restricts immediate downside before the mid-month low.

USD/CAD stays on the front foot for the second consecutive day, refreshing intraday high around 1.2970 during Thursday’s Asian session.

In doing so, the Loonie pair extends the previous day’s rebound from the 50-SMA towards a one-week-old descending resistance line.

However, a horizontal area comprising multiple levels marked since the previous Wednesday joins the bearish MACD signals to challenge the pair’s upside around 1.3000 psychological magnet.

Should the quote rises past 1.3000, the double tops around the monthly peak of 1.3078 will be crucial to watch.

Meanwhile, the 50-SMA and a weekly support line restrict immediate pullbacks of the USD/CAD pair, respectively near 1.2940 and 1.2925.

In a case where USD/CAD breaks the 1.2925 support, the bears could aim for the multiple lows marked during mid-June surrounding 1.2860.

It’s worth noting, however, that the pair’s weakness past 1.2860 will make it vulnerable to decline further towards the monthly low of 1.2517.

To sum up, USD/CAD is likely to extend the latest recovery but the upside room is limited.

USD/CAD: Four-hour chart

Trend: Limited upside expected