- USD/CAD retreats from intraday top, edges higher of late.
- 50% Fibonacci retracement joins 50-SMA to challenge bulls.
- MACD conditions, sustained trading beyond 1.2585 support confluence keeps buyers hopeful.
USD/CAD buyers take a breather around 1.2685 during early Friday. The Loonie pair refreshes four-day high earlier in Asia but failed to cross 50-SMA, as well as 50% Fibonacci retracement of July–August upside.
Even so, bullish MACD signals and the pair’s ability to stay beyond convergence of 200-SMA and a monthly rising trend line, around 1.2585, favor buyers.
Hence, fresh buying can be witnessed on the clear break above 1.2690, targeting the weekly horizontal resistance area near 1.2815–20. However, the 1.2700 round figure may add filters to the north.
In a case where USD/CAD prices remain firm past 1.2820, the monthly high of 1.2950 and 1.3000 will be in focus.
On the contrary, a clear downside past 1.2585 support confluence will not hesitate to challenge the August 11 lows near 1.2490 ahead of targeting the monthly bottom close to 1.2450.
USD/CAD: Four-hour chart
Trend: Bulish
