USDCAD Price Analysis: Stays defensive above 21-DMA support

• USDCAD prints mild losses while retreating from a fortnight top.
• Sustained break of key DMAs, impending bull cross on MACD favor buyers.
• Bears need validation from 1.3500 to retake the control.

USDCAD pares recent gains around a two-week high during Friday’s sluggish Asian session. In doing so, the Loonie pair retreats from a short-term key horizontal resistance area, declining to 1.3730 by the press time.

However, the receding bearish signals from MACD and a successful break of the 21-DMA keeps the USDCAD buyers hopeful unless the quote stays beyond the stated DMA support near 1.3700.

Even if the quote declines below 1.3700, a convergence of the 50-DMA and lows marked since late October offers a tough nut to crack for the USDCAD bears around 1.3500.

That said, the 1.3610 level and an upward sloping trend line from early August, close to 1.3320 at the latest, act as additional downside filters to watch during the pair’s further downside.

Meanwhile, recovery moves need to provide a daily closing beyond the 1.3825 level to enable the USDCAD bulls to question the yearly high, currently around 1.3980.

Following that, the 1.4000 round figure may act as an additional resistance to watch for the pair buyers before targeteing the 61.8% Fibonacci Expansion (FE) of the pair’s September-October moves, near 1.4130.

USDCAD: Daily chart

Trend: Further upside expected