- USD/CAD extends the previous day’s gain in the European session.
- Bulls face rejection near the 1.2110 mark.
- MACD indicates upside biasness.
The USD/CAD pair trades on a muted tone on Wednesday in the European trading hours. The pair confides in a broader range of 1.2050-1.2120 for the past three to four sessions.
At the time of writing, USD/CAD trades at 1.2107, down 0.01% for the day.
USD/CAD 4-hour chart
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On the 4-hour chart, the USD/CAD has formed a double top formation near the 1.2140 level. The USD/CAD bulls face downward pressure near the descending trendline, which extends from the high of 1.2133.
If price breaks above the session’s high at 1.2117, then it would move toward the high of June 4 in the vicinity of the 1.2135 area.
The Moving Average Convergence Divergence (MACD) indicator reads comfortably above the midline with a bullish crossover. USD/CAD bulls would then aim to test the 1.2140 and the 1.2160 horizontal levels.
Alternatively, if price sustains below the session’s low at 1.2105, then the first support could be seen at the 20-hour Simple Moving Average at 1.2092 followed by the 1.2080 horizontal support level.
The next area of support would be navigated towards the low of June 7 at 1.2057.
USD/CAD additional levels
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