USD/CAD faced a clear rejection above 1.41 and is on a downtrend after attempting a rebound above 1.38 to 1.41, while currently trades around 1.40 in the global market. The intraday is exhibiting a dull trail of the pair around 1.40 in today’s trading session, i.e., on May 6, 2020. However, the pair is trading around the critical support area on the 5-hourly chart while it retains 50-day MA support losing 200-day MA support as it plummeted below 1.41.
The pair closed around 1.4075 and 1.4080 in yesterday’s trading session, and at the time of writing, it stabilized itself at 1.405 support, holding 1.40 as the psychological support. Moreover, the price of USD/CAD is showing a certain kind of trend as it draws 2 notable downtrends in the previous month and appears to be drawing one now. However, if the pair follows the trend, it is likely to retest support at 1.39 before the weekend. Despite a few relaxations given, the US Dollar has not yet recovered, with its total capacity managed to retain the status of standard currency.
Currently, the pair is yet to fall under utter selling pressure as the oil prices—interconnected commodity is striking the buyer’s interest as it rebounds intermittently. The MACD appears like it is losing the gains as the signal line appears crossing the MACD line.