• USD/CAD dribbles around five-week low, probes four-day downtrend.
• 61.8% Fibonacci retracement level, 200-DMA tests bearish commitments.
• RSI, MACD signals hint at the further downside, 100-DMA guards recovery moves.

USD/CAD seesaw around the key 1.2660-55 support confluence as bears take a breather after refreshing the multi-day low. In doing so, the Loonie pair tests the bears ahead of the key Q1 2022 Canada GDP, pausing the consecutive declines for the last four days.

Not only the pre-data consolidation but a convergence of the 200-DMA and 61.8% Fibonacci retracement (Fibo.) of April-May upside, around 1.2660-55, also challenge the USD/CAD bears.

Should the quote conquer the 1.2655 support, the odds of witnessing a gradual south-run towards the 1.2600 and 1.2500 thresholds appear more lucrative.

However, April’s low surrounding 1.2400 could tests the USD/CAD sellers afterward.

Meanwhile, the 100-DMA level of 1.2700 tests the USD/CAD buyers ahead of a downward sloping trend line from early May, close to 1.2800 by the press time.

Even if the USD/CAD crosses the 1.2800 hurdle, bulls remain skeptical until witnessing a clear break of the 23.6% Fibo. level surrounding 1.2920.

USD/CAD: Daily chart

Trend: Further weakness expected