USD/CAD Price Analysis: Falling wedge confirmation keeps buyers hopeful
|- USD/CAD retreats from intraday high, struggles to extend prior gains.
- Confirmation of a bullish chart pattern joins upbeat MACD conditions to back the buyers.
- Area between 50-SMA and 200-SMA restricts immediate moves.
USD/CAD fades the previous day’s rebound, easing to 1.2680 by the press time of the pre-European session on Wednesday.
In doing so, the Loonie pair seesaws between 50-SMA and 200-SMA, keeping the previous day’s bullish chart confirmation.
Given the bullish MACD giving the back to the falling wedge breakout, USD/CAD prices are likely to overcome the immediate hurdle surrounding the 1.2715 threshold, comprising 50-SMA.
Following that, 1.2745 may offer an intermediate halt during the pair’s run-up towards the monthly peak surrounding the 1.2900 round figure.
However, any further upside will be challenged by the yearly top of 1.2949, as well as the 1.3000 psychological magnet.
Meanwhile, the 200-SMA level of 1.2660 and the stated wedge’s resistance line, now support near 1.2630, will restrict short-term USD/CAD declines.
Also acting as a downside filter is the short-term falling support line, part of the falling wedge close to 1.2575.
USD/CAD: Four-hour chart
Trend: Further upside expected
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