- USD / CAD falls for the second day in a row while staying the course to initiate the two week downtrend.
- Seven-week-old support 100-DMA is attracting bears ahead of December’s jobs report.
- 21-DMA keeps the immediate rise, a monthly horizontal line is added to the resistances.
USD / CAD remains lower for the second day in a row as sellers attack 1.2700, down 0.13% intraday ahead of Friday’s European session.
In doing so, the Loonie pair extends the previous day’s U-turn from 21-DMA amid bearish MACD signals as traders await key employment data from Canada and the United States for December.
Read: USD / CAD declines remain on top despite hawkish Fed, oil prices and BoC support CAD
That said, the 38.2% Fibonacci retracement (Fibo.) Of the October to December rise, near the 1.2700 threshold, limits immediate declines in USD / CAD prices before an ascending support line from. November 19, near 1.2645 at the latest.
It should be noted, however, that the bearish breakout of 1.2645 will need to conquer the confluence of 1.2630-25 support, including 100-DMA and 50% Fibo, to keep the bears in the seat of the driver.
Alternatively, strong monthly horizontal line resistance, around 1.2845, adds to the bullish filters even as USD / CAD prices manage to break through the immediate hurdle of 21-DMA near 1.2795.
If the quote stays above 1.2845, the odds of the pair rallying towards 1.2900 and the December peak of 1.2964 cannot be ruled out.
USD / CAD: Daily chart
Trend: Further declines expected