USD/CAD PRICE ANALYSIS: LONNIE BULLS DEFEND 200-EMA, 1.2400 EYED

• Loonie bulls have defended 200-EMA and earlier breakout of the ascending triangle pattern.
• The momentum oscillator RSI (14) has sensed resistance around 60.00.
• The asset is auctioning below 20-EMA, which signals a downside momentum.

The USD/CAD pair has witnessed a steep fall after struggling to sustain above 1.2600. The asset has extended its losses on Thursday after slipping below Wednesday’s low at 1.2555.

On a daily scale, USD/CAD has attracted significant offers after testing the lower boundary of ascending triangle formation to near 1.2600. Earlier, the major witnessed a breaking below the mentioned chart pattern whose horizontal resistance is placed from 20 August 2021 high at 1.2950 while the ascending trendline is plotted from June 2021 low at 1.2007. Loonie bulls have defended the 200-period Exponential Moving Average (EMA) at 1.2640, which signals their strength.

The pair has also tumbled below the 20-EMA at 1.2580, which indicates more weakness ahead. Meanwhile, the Relative Strength Index (RSI) (14) has faced barricades while crossing the 60.00 that is reflecting a failed attempt by the greenback bulls for regaining control.

Going forward, a drop below March’s last traded price at 1.2503 will drag the asset towards January’s low at 1.2451, followed by the round level support of 1.2400.

On the flip side, bulls may take the charge if the asset overstep Wednesday’s high at 1.2676, which will send the asset towards March 17 high at 1.2699. A breach of the March 17 high will drive the asset towards the March 16 high at 1.2778.

USD/CAD DAILY CHART