USD/CAD Price Analysis: Looks set to refresh multi-month low below 1.2500

• USD/CAD wavers around intraday low as one-week-old resistance line favors bears near recently refreshed 37-month low.
• MACD teases buyers but multiple hurdles to the north keep sellers on the driver’s seat.

USD/CAD stays mostly unchanged near 1.2477 during early Tuesday as bears catch a breather after declining to the fresh low since February 2018 the previous day. Even so, a downward sloping trend line from last Tuesday tests the quote’s corrective pullback.

In a case where the corrective pullback crosses 1.2485 immediate hurdle, a horizontal area established since late February, near 1.2575, will offer a bumpy road to bulls.

Also acting as the key upside barrier is the monthly top surrounding 1.2740 that holds the key to recall USD/CAD bulls.

Meanwhile, the latest multi-month low near 1.2440 can lure ragging sellers ahead of directing them to the descending trend line from January 21, at 1.2405 now.

It should, however, be noted that the USD/CAD bears will have to conquer the 1.2400 threshold during the further weakness past-1.2405 before eyeing February 2018 low near 1.2248.

Overall, USD/CAD stays in the bearish trajectory but a break of immediate resistance can trigger a corrective pullback, which is less likely.

USD/CAD four-hour chart

Trend: Bearish