FXstreet.com (Córdoba) - The USD/CAD rose back above the parity level during the NY session on Wednesday as the risk aversion sentiment benefited the greenback in detriment of the currencies linked to commodities.
After finding support at the 100-hour SMA around 0.9995, USD/CAD climbed to retest the 1.0030/35 resistance area, which has capped the pair this week. At time of writing, USD/CAD is trading at the 1.0025 zone, 0.1% above its opening price.
"With resistance firmly established at 1.0030 in USDCAD, it seems that price action is portending towards a near term decline", says Richard C. Lee, analyst at FXstreet.com. "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".
After finding support at the 100-hour SMA around 0.9995, USD/CAD climbed to retest the 1.0030/35 resistance area, which has capped the pair this week. At time of writing, USD/CAD is trading at the 1.0025 zone, 0.1% above its opening price.
"With resistance firmly established at 1.0030 in USDCAD, it seems that price action is portending towards a near term decline", says Richard C. Lee, analyst at FXstreet.com. "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".
