USD/CAD Price Analysis: Six-week-old support probes bears around 1.2800

• USD/CAD remains pressured around 1.5-month low, bears approach descending support line from mid-June.
• Bearish MACD signals, downbeat RSI joins daily closing below 100-day EMA to favor sellers.
• Buyers need validation from monthly horizontal resistance, sellers could aim for 200-day EMA.

USD/CAD stays depressed around a seven-week low near 1.2800 during Friday’s Asian session. In doing so, the Loonie pair sellers keep reins around the short-term key support line.

It’s worth noting, however, that the quote’s first daily closing below the 100-day EMA since early June joins the downbeat RSI (14), not oversold, as well as bearish MACD signals, to hint at the pair’s further declines.

Hence, the USD/CAD bears await a clear downside break of the descending support line from June 14, at 1.2790 by the press time, to excel.

Following that, the 200-day EMA level near 1.2750 and the 61.8% Fibonacci retracement of April-July upside, near 1.2715, will be in focus before directing the sellers towards a three-month-long support line, near 1.2615 at the latest.

On the contrary, a confluence of the 100-day EMA and 50% Fibonacci retracement level guards the quote’s recovery moves around 1.2815.

Also acting as a strong upside hurdle for the USD/CAD buyers is a horizontal area established from June 30, close to 1.2940.

USD/CAD: Daily chart

Trend: Further weakness expected