USD/CAD Price Analysis: Lonnie bulls defend 200-EMA, 1.2400 eyed

• Loonie bulls have defended 200-EMA and earlier breakout of the ascending triangle pattern.
• The momentum oscillator RSI (14) has sensed resistance around 60.00.
• The asset is auctioning below 20-EMA, which signals a downside momentum.

The USD/CAD pair has seen a precipitous decline after failing to maintain a price over 1.2600. After falling below the previous day's low of 1.2555 on Wednesday, the asset has seen its losses increase on Thursday.

After testing the bottom border of an ascending triangle formation to a level around 1.2600 on a daily basis, the USD/CAD has received considerable bids and offers. Previously, the major experienced a break below the previously indicated chart pattern, whose horizontal resistance is marked by the high of 20 August 2021 at 1.2950 and the ascending trendline is marked by the low of June 2021 at 1.2007. The 200-period Exponential Moving Average (EMA) around 1.2640, which reflects the strength of the loonie bulls, has been successfully resisted.

The pair has also fallen below the 20-day exponential moving average (EMA) at 1.2580, indicating more weakening ahead. Meanwhile, the Relative Strength Index (RSI) (14) has encountered roadblocks while attempting to surpass the 60.00 level, indicating a failed effort by the greenback bulls to retake control of the currency.

The asset will be dragged towards the January low of 1.2451 and then below the round level support of 1.2400 if the price of the asset falls below March's most recent traded price of 1.2503.

Bulls, on the other hand, may seize the initiative if the asset exceeds Wednesday's high of 1.2676, which would drive the asset towards the previous high of 1.2699 achieved on March 17. A violation of the March 17 high will send the asset back towards the March 16 high, which is now at 1.27778 USD.

USD/CAD daily chart