USD/CAD Price Analysis: Attempts a bounce on 1.3100 after rising wedge breakdown

USD/CAD bounces back above 1.31 amid SMA bull cross.
The spot saw a rising wedge breakdown on the hourly chart.
1.3127 likely to challenge the recovery from sub-1.31 levels.

Dhwani Mehta FXStreet

USD/CAD is attempting a recovery from a drop below 1.3100, as the bulls fight back control amid a bounce in the US dollar across the board and a retracement in WTI’s rally.

From a near-terrn technical perspective, the spot found fresh bids just above the critical support of 1.3083. This could be mainly attributed to a bullish crossover spotted on the hourly chart.

The upward-sloping 100-hourly moving average (HMA) cut the horizontal 200-HMA from below, suggesting a likely bounce in the spot.

The hourly Relative Strength Index (RSI) also witnessed an uptick and inches towards the 50.00 level while within the bearish zone.

On the road to recovery, the confluence of the 21 and 50-HMAs at 1.3127 is likely to offer stiff resistance to the bulls. Further up, the rising trendline support now resistance at 1.3142 will be the level to beat for the buyers.

To the downside, acceptance below the abovementioned crucial support at 1.3083 is needed to reviving the bearish momentum.

The next significant support is seen at November 12 lows of 1.3056.

From a broader perspective, the risk remains to the downside, as the major has charted a rising wedge breakdown on the given timeframe, with a test of the measured target of 1.2885 likely on the cards in the week ahead.

USD/CAD: Hourly chart

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.3114
Today Daily Change	-0.0029
Today Daily Change %	-0.22
Today daily open	1.3143

Trends
Daily SMA20	1.3155
Daily SMA50	1.3205
Daily SMA100	1.3282
Daily SMA200	1.3539

Levels
Previous Daily High	1.3173
Previous Daily Low	1.3116
Previous Weekly High	1.3173
Previous Weekly Low	1.2928
Previous Monthly High	1.339
Previous Monthly Low	1.3081
Daily Fibonacci 38.2%	1.3151
Daily Fibonacci 61.8%	1.3138
Daily Pivot Point S1	1.3115
Daily Pivot Point S2	1.3088
Daily Pivot Point S3	1.3059
Daily Pivot Point R1	1.3171
Daily Pivot Point R2	1.32
Daily Pivot Point R3	1.3227

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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