With resistance firmly established at 1.0030 in USDCAD, it seems that price action is portending towards a near term decline. The figure has prompted the formation of a triple top technical pattern, indicative of a bearish drop to initial support at 0.9991. The level acts as the base for short term consolidation. As such, a subsequent downside violation would open scope for a drop to 0.9956 50% fib support from the 0.9879-1.0035 bullish wave.
In addition, technical oscillators are bolstering the notion of a decline as a bearish MACD divergence has surfaced. The reduction in the MACD histogram is coinciding with higher highs in USDCAD price action – even as Stochastics remains just short of overbought territory.
Coincidentally, should the pair spike temporarily through1.0300 resistance, it would face formidable resistance barriers at 1.0071.
Source: FXTrek Intellicharts
