USD/CAD Price Analysis: Upside movement exhaustive near 1.2800.
USD/CAD trades cautiously in the Asian trading hours on Monday.
More downside for the pair, if price decisively breaks 1.2760.
Momentum oscillator holds onto overbought zone with a neutral stance.
USD/CAD accumulates losses in the initial European trading session. The pair opened higher albeit fizzled out quickly to trade lower.
At the time of writing, USD/CAD is trading at 1.2763, down 0.45% for the day.
On the daily chart, after making a shooting star on August 20, USD/CAD came under selling pressure.
That said, a break of 1.2760 will see more downside level at 1.2720 horizontal support level.
The ascending trendline from the low of 1.2422 acts as the last hope for the bulls. A daily close below the bullish slopping line would bring a low of August 19 at 1.2641 back into action.
A break and daily close below the mentioned level would further encouraged the bears to testify the 1.2600 horizontal support level.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator holds onto the positive territory but with upside momentum. Any uptick in would amplify the buying pressure toward the 1.2844 horizontal resistance level.
Further, if price moves higher, it would attempt to recapture the high of Friday at 1.2949.
The next area of resistance for the market participant would be the November 2020 high of 1.3000.