USD/CAD Price Analysis: Justifies rising wedge confirmation around 1.2650
|- USD/CAD prints three-day downtrend as sellers attack weekly low.
- Confirmation of the bearish chart pattern joins descending RSI line to favor sellers.
- 50-SMA acts as immediate support ahead of early monthly swing high.
- Descending trend line from Tuesday adds to the upside filters.
USD/CAD remains on the back foot for the third consecutive day, taking offers around 1.2650 to refresh intraday low during early Thursday.
The Loonie pair confirmed a rising wedge bearish chart pattern the previous day and the downward sloping RSI, not oversold, added strength to the fall afterward.
That said, the quote currently drops towards 50-SMA around 1.2620 but the early November highs near 1.2600 will challenge the USD/CAD bears afterward.
It should be noted that the theoretical target hints at a fresh monthly low under 1.2350 wherein the one-month-old rising support line can add to the downside filters near 1.2480.
Meanwhile, corrective pullback needs to cross the immediate resistance line from Tuesday, close to 1.2700, before recalling the USD/CAD bulls.
Following that, the monthly peak of 1.2744 and late September’s high near 1.2775 will be in focus.
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.