USD/CAD Price Analysis: Fades gains above 200-hour moving average
|- USD/CAD trades below a key moving average support.
- The hourly chart shows a rising channel breakdown and bearish average crossover.
The USD/CAD pair is trading just below the 200-hour moving average at 1.4073 at press time, having faced rejection at 1.4088 an hour ago.
Acceptance under the 200-hour average would mean the bounce from Thursday's low of 1.40 has ended and the sell-off suggested by the 4-hour chart rising channel breakdown has resumed.
The ascending channel was breached during Thursday's Asian trading hours and is now accompanied by a bearish crossover of the 50- and 100-hour averages and a below-50 reading on the hourly chart relative strength index.
Hence, a re-test of 1.40 looks likely. A violation there would shift the focus to recent lows near 1.3850. On the higher side, a move above 1.4250 is needed to revive the bullish setup.
1-hour chart
Trend: Bearish
Technical levels
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