USDCAD Analysis: Downwards potential still likely

USDCAD

Strong downside risk drove the USD/CAD exchange rate lower on Wednesday, as a result, the pair breached the lower boundary of an ascending pattern. After failing to overcome the weekly pivot point at 1.3045 for the second consecutive session, the rate fell 101-pips down to 1.2960 which is the weekly support level.

Technical indicators flash strong bullish signals, however, some downwards potential might still occur during the following session. If the price movement breached the aforementioned support, the nearest barrier is provided by the lower boundary of an ascending channel.  

Nevertheless, if bulls prevail, gains are likely to be limited by the 55– and 100– hour SMAs.

USDCAD

 

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