USD/CAD Price Analysis: Stays pressured towards 1.2600

• USD/CAD remains on the back foot for second consecutive day.
• Three-day-old horizontal support holds the key to further downside, MACD favors bears.
• Weekly support line will challenge the sellers, nearby descending resistance line challenge recovery moves.

USD/CAD holds lower ground near 1.2640, down 0.17% intraday nearing Friday’s European session. In doing so, the Loonie pair drops for the second day in a row while following a descending trend line from Tuesday.

Given the bearish MACD, coupled with the failures to cross the nearby resistance line, the quote drops towards a horizontal area comprising multiple lows marked in the last three days, around 1.2625.

However, the quote’s further weakness will be challenged by the 200-HMA level of 1.2600 and an ascending support line from September 03, near 1.2565.

Meanwhile, recovery moves need to cross the immediate resistance line close to 1.2665 to recall the buyers.

Following that, the 1.2700 threshold will precede the monthly high of 1.2762 to please the USD/CAD bulls.

Overall, USD/CAD funnels down to the short-term key levels with bearish MACD keeping sellers hopeful.

USD/CAD: Hourly chart

Trend: Further weakness expected