USD/CAD Price Analysis: Bears attack 50-DMA around mid-1.2800s

• USD/CAD takes the offers to refresh intraday low, reverses previous day’s rebound from 12-day bottom.
• Bearish MACD, failure to bounce off 50-DMA keep sellers hopeful.
• Monthly horizontal resistance line guards immediate upside, 50% Fibonacci retracement lures sellers.

USD/CAD renews intraday bottom around 1.2860 heading into Thursday’s European session. In doing so, the Loonie pair reverses the previous day’s corrective pullback from a two-week low as bears poke the 50-DMA support.

Considering the quote’s failure to rebound from the 50-DMA, as well as the bearish MACD signals, the sellers are likely to conquer the immediate support around 1.2855, comprising the 50-DMA.

Following that, the 50% Fibonacci retracement level of its April-July upside, around 1.2815, will precede the 1.2800 threshold to lure the USD/CAD bears.

It’s worth noting, however, that a convergence of the 200-DMA and the 61.8% Fibonacci retracement, near 1.2700, appear a tough nut to crack for the pair sellers afterward.

Meanwhile, recovery remains elusive until the quote stays below a horizontal area comprising multiple peaks marked since late June, around 1.2935-45.

Following that, an area comprising the triple tops marked since May, close to 1.3075-85, will be crucial to watch for fresh impulse.

In a case where USD/CAD bulls manage to keep reins past 1.3085, they can rally towards the recently flashed multi-month high near 1.3225.

USD/CAD: Daily chart

Trend: Further weakness expected