- USD/CAD stays mildly offered inside a short-term descending triangle.
- Normal RSI conditions suggest further weakness, 200-bar SMA adds to the upside barriers.
USD/CAD remains on the back-foot near the weekly low of 1.2706, currently down 0.18% near 1.2711, during early Wednesday. In doing so, the quote portrays a descending triangle bullish chart pattern while also staying below 200-bar SMA.
Considering the absence of oversold RSI conditions, USD/CAD selling is likely to stretch towards the stated triangle’s support. However, key events like the monetary policy meeting of the Bank of Canada and US President-elect Joe Biden’s inauguration ceremony in the White House, probe the sellers.
During the quote’s downside towards the triangle support near 1.2630-25, the 1.2660 level can act as an intermediate halt.
It should additionally be noted that USD/CAD bears’ dominance past-1.2625 will be tested by the 1.2600 round-figure ahead of highlighting the April 2018 low around 1.2525.
Alternatively, an upside break of the triangle should have enough strength to cross 200-bar SMA, currently around 1.2770 to aim for the monthly near 1.2835 and the late-December top close to 1.2960.
In a case where the USD/CAD rallies past-1.2960, the 1.3000 psychological magnet and December 2020 top of 1.3010 will be the key to watch.
USD/CAD four-hour chart
Trend: Further weakness expected
Additional important levels
|Today last price||1.2713|
|Today Daily Change||-23 pips|
|Today Daily Change %||-0.18%|
|Today daily open||1.2736|
|Previous Daily High||1.2764|
|Previous Daily Low||1.2716|
|Previous Weekly High||1.2836|
|Previous Weekly Low||1.2625|
|Previous Monthly High||1.301|
|Previous Monthly Low||1.2688|
|Daily Fibonacci 38.2%||1.2734|
|Daily Fibonacci 61.8%||1.2746|
|Daily Pivot Point S1||1.2713|
|Daily Pivot Point S2||1.269|
|Daily Pivot Point S3||1.2664|
|Daily Pivot Point R1||1.2762|
|Daily Pivot Point R2||1.2787|
|Daily Pivot Point R3||1.281|
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