USD/CAD Price Analysis: Off two-month-old support above 1.2350

• USD/CAD battles intraday top to consolidate recent losses.
• Strong support, upbeat Momentum line keep buyers hopeful.
• 100-day SMA guards immediate upside, descending trend line from January becomes the key hurdle.

USD/CAD remains sidelined around 1.2370, reverses the previous day’s pullback moves, amid Tuesday’s Asian session. The loonie pair stepped back from a four-month-old resistance line the previous day but the pair buyers return from a horizontal area comprising multiple levels marked since late April.

Given the strong Momentum and the pair’s bounce off the key support zone, USD/CAD may extend the recovery moves toward the immediate hurdle, namely 100-day SMA level of 1.2420.

During the quote’s further upside, the 1.2200 and the stated resistance line from late January, close to 1.2485, will crucial to watch.

Meanwhile, a downside break of 1.2350-25 support area may seek confirmation around 1.2270 before dragging the quote to the mid-May tops surrounding the 1.2200 mark.

It’s worth noting that there prevail multiple stops between the USD/CAD south-run below 1.2200 and the yearly low close to the 1.2000 psychological magnet.

USD/CAD daily chart

Trend: Further recovery expected