USD/CAD Price Analysis: Flirts with 200-SMA after confirming rising wedge bearish pattern
|- USD/CAD consolidates recent losses despite confirming bearish chart formation.
- Ascending support line from late June becomes the key, three-week-old horizontal area challenges buyers.
- Downbeat Momentum line, rising wedge confirmation keep sellers hopeful.
USD/CAD refreshes intraday low to 1.2519, down 0.05% on a day, amid Friday’s Asian session. Even so, the Loonie pair seesaws around 200-SMA while raising doubts on the rising wedge confirmation, portrayed on Thursday.
In addition to lacking a clear downside below the 200-SMA level of 1.2515, an ascending support line from June 23, close to 1.2480, also challenges the pair sellers.
It should be noted that sustained trading below 1.2480 will not hesitate to challenge five-week-long horizontal support surrounding 1.2420.
Meanwhile, USD/CAD sellers remain hopeful unless the quote bounces back beyond 1.2545, defying the bearish pattern.
Even so, the formation’s upper line and a short-term horizontal resistance, respectively near 1.2600 and 1.2610, will be a strong hurdle for the bulls to retake controls.
Should the quote remains firmer past 1.2610, 1.2670 and 1.2730 will be important to watch ahead of the previous month’s top around 1.2810.
USD/CAD: Four-hour chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.