• USD/CAD struggles to extend recovery moves from fortnight-long horizontal support.
• Bullish MACD signals keep buyers hopeful to poke the monthly resistance line.
• Convergence of 100-DMA, 50% Fibonacci retracement offers strong support.

USD/CAD buyers flirt with a short-term key hurdle surrounding 1.2700 during Wednesday’s Asian session, following the bounce off a two-week-old horizontal support zone.

A convergence of the 50-DMA and 38.2% Fibonacci retracement (Fibo.) of October-December 2021 upside challenges the USD/CAD pair’s immediate upside around 1.2710.

However, bullish MACD signals and the Loonie pair’s ability to stay beyond 1.2655-50 horizontal area for nearly two weeks keep the buyers hopeful to overcome the immediate hurdle.

Following that, a downward sloping trend line from early January, near 1.2785, will be in focus as a break which will direct USD/CAD bulls towards crossing the 1.2800 threshold.

Meanwhile, a downside break of the 1.2650 support will again highlight the 1.2625-20 support confluence, comprising the 100-DMA and 50% Fibo.

Should the quote’s drop below 1.2620, the mid-January’s swing high near 1.2570 may offer an intermediate halt during the fall targeting the yearly low of 1.2453.

USD/CAD: Daily chart

Trend: Further recovery expected