Strong bearish momentum was introduced in the market on the USD/CAD currency pair during the end of Wednesday trading session. As a result, the US Dollar lost 112 base points or 0.85% against the Canadian Dollar.
After reaching near the 50.00% Fibonacci retracement level, the exchange rate pullback. This retracement can be measured by connecting the low at 1.2963 and the July 19 high at 1.3290.
Technical indicator flashes strong buy signal on the weekly time-frame. However, a strong resistance formed by the combination of the 55-, and 100-, and 200– hour SMAs could pressure the rate south within this session.
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