• USD/CAD sellers attack support line of the bullish chart pattern.
• Bearish MACD signals, lower high formation keep sellers hopeful.
• Buyers have a bumpy road on the way to previous monthly top.

USD/CAD stays defensive around 1.2965, poking the support line of a two-week-old ascending trend channel, during Thursday’s Asian session.

That said, the Loonie pair’s recent lower high formation joins the bearish MACD signals to tease sellers inside a bullish chart pattern.

However, a clear downside break of the stated channel’s support line, at 1.2950 by the press time, appears necessary for the USD/CAD bear’s entry.

Even so, the 200-SMA level near 1.2905 could test the downside momentum before directing the bears towards the monthly low of 1.2727. During the fall, multiple supports around 1.2800 and 1.2765 could challenge the sellers.

Alternatively, recovery moves may initially have to cross the weekly falling resistance line, at 1.3000 by the press time, before challenging the 61.8% Fibonacci retracement level of July-August downside, around 1.3035.

Following that, a horizontal area established from early July, close to 1.3085-90, will be important to watch for the pair buyers. Additionally challenging the USD/CAD upside is the top of the stated channel, near 1.3115 at the latest.

USD/CAD: Four-hour chart

Trend: Further weakness expected