USD/CAD Price Analysis: Extends pullback towards 1.2900 inside rising wedge

USD/CAD remains pressured inside a bearish chart pattern after stepping back from yearly top.
RSI retreat, MACD conditions suggest further downside but 1.2690 becomes a tough nut to crack for bears.
Bulls need to cross 1.2975 to keep the reins.

Anil Panchal FXStreet

USD/CAD drops towards 1.2900, extending the previous day’s pullback from the yearly top, during Wednesday’s Asian session. In doing so, the Loonie pair post the second consecutive daily loss while staying inside a bearish chart pattern called a rising wedge.

Given the recently flashed bearish MACD signal and RSI retreat from the overbought zone, USD/CAD declines are likely to stretch longer.

While the 1.2900 may entertain intraday sellers, a downside break of the stated wedge’s support line near 1.2840, will open the door for the USD/CAD downturn towards the mid-November lows near 1.2490.

However, a convergence of the 200-SMA and a five-week-old support line, near 1.2690, is strong support to break for keeping the USD/CAD bears in the driver’s seat after 1.2840.

Alternatively, recovery moves remain elusive until staying below the wedge’s resistance line near 1.2975.

Even so, the 1.30000 psychological magnet will be crucial before USD/CAD bulls eye the November 2020 peak of 1.3172.

USD/CAD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2915
Today Daily Change	-0.0025
Today Daily Change %	-0.19%
Today daily open	1.294

Trends
Daily SMA20	1.277
Daily SMA50	1.2579
Daily SMA100	1.2603
Daily SMA200	1.2486

Levels
Previous Daily High	1.2964
Previous Daily Low	1.2881
Previous Weekly High	1.2937
Previous Weekly Low	1.2706
Previous Monthly High	1.2837
Previous Monthly Low	1.2352
Daily Fibonacci 38.2%	1.2933
Daily Fibonacci 61.8%	1.2913
Daily Pivot Point S1	1.2893
Daily Pivot Point S2	1.2846
Daily Pivot Point S3	1.281
Daily Pivot Point R1	1.2975
Daily Pivot Point R2	1.3011
Daily Pivot Point R3	1.3058

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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