USD/CAD Price Analysis: Bouncing off multi-year lows near 1.2070

• USD/CAD holds onto a quiet tone in the early European session.
• Pair looks out for gains, inching toward 20-hour SMA.
• Oversold momentum oscillator points to stretched selling conditions.

The USD/CAD pair seesaws in the early European session. The pair opened higher earlier, albeit fizzling out rather quickly toward the session’s low of 1.2088.

At the time of writing, the USD/CAD pair is trading at 1.2096, down 0.01% on the day.

USD/CAD hourly chart

On the hourly chart, the pair has been consolidating near the 1.2090 mark,in progress to capture the 20-hour Simple Moving Average (SMA) placed at 1.2100. In doing so, the pair would carve a path toward the 1.2140 and the 1.2180 horizontal resistance zone.

The next area of resistance would be the May 6 high at 1.2288.

On the flip side, the Moving Average Convergence Divergence (MACD) indicator falters below the midline, and any downtick could bring the multi-year low from 2017 into the picture, where the first could be the September 2017 weekly low at 1.2061, followed by the weekly low of May 2015 at 1.2011.
 

USD/CAD Additional levels