USDCAD Facing Tough Resistance
The US Dollar declined sharply towards the 1.2420 level against the Canadian Dollar and found support. The USDCAD pair recovered from the 1.2418 swing low above the 23.6% Fib retracement level of the last decline from the 1.2575 high to 1.2418 low.
However, there is a major bearish trend line at 1.2485 on the hourly chart along with the 100 simple moving average. The 38.2% Fib retracement level of the last decline from the 1.2575 high to 1.2418 low at 1.2480 is also acting as a hurdle.
As long as the pair is below the 1.2480-95 area, it remains in the bearish zone. Only a close above the 100 SMA could take the pair above 1.2520.