USD/CAD Price Analysis: Buyers meet multi-month support near 1.2370

USD/CAD trades cautiously on Friday in the early Asian session.
Bulls remain hopeful near 1.2370 a crucial support level.
Momentum oscillator holds onto oversold zone warns caution against aggressive bids.

USD/CAD trades with a cautious tone on Friday in the early Asian trading hours. The pair confides in a narrow trade band with no meaningful traction. At the time of writing, USD/CAD is trading at 1.2372, up 0.04% for the day.

USD/CAD daily chart

On the daily chart, after testing the high of 1.2896 on September 20, the USD/CAD pair came under selling pressure. The pair then took solace at 50-day Simple Moving Average (SMA) at 1.2548 and tested the high of 1.2896. Once again a break of the mentioned SMA resulted in a downside movement for the pair toward the multi-month support near 1.2370. If the price sustains the intraday high it could move back to the 1.2450 horizontal resistance level.

The Moving Average Convergence Divergence (MACD trades in the oversold zone. Any uptick in the MACD would trigger a fresh round of buying opportunities for the pair. USD/CAD bulls would look out for the psychological 1.2500 mark followed by the high of October,10, at 1.2562

Alternatively, a break of multi-month support will bring more pain to the pair with the first downside target at a low of July 6 at 1.2303 followed by the 1.2300 horizontal support level. Next, the market participant will test the 50-day SMA at a 1.2262.