• USD/CAD bounces off five-week low marked the previous day.
• Multiple levels since February 24 offers immediate hurdle to the corrective pullback.
• 50-day SMA, descending trend line from early February adds to the upside filters.

Having marked the biggest daily drop in 10 months on Wednesday, USD/CAD portrays a corrective pullback around the 1.2500 threshold ahead of Thursday’s European session. Even so, the quote trades below a two-month-old horizontal resistance, around 1.2515 amid normal RSI conditions.

Given the absence of oversold RSI, coupled with the quote’s sustained weakness below the stated hurdle, USD/CAD bears are likely to keep the reins.

It should, however, be noted that the fresh downside will initially attack the recent lows near 1.2460 before challenging the March month’s bottom near 1.2365.

Meanwhile, an upside break of 1.2515 immediate resistance will not be a green signal for the USD/CAD buyers as the 50-day SMA and a 10-week-old downward sloping trend line, respectively close to 1.2580 and 1.2620, act as tough resistances.

Even if the quote rises past-1.2620, a daily closing beyond 1.2650 will be necessary for the bulls to keep the reins.

USD/CAD DAILY CHART