USD/CAD Price Analysis: Falling wedge confirmation keeps buyers hopeful

USD/CAD retreats from intraday high, struggles to extend prior gains.
Confirmation of a bullish chart pattern joins upbeat MACD conditions to back the buyers.
Area between 50-SMA and 200-SMA restricts immediate moves.

Anil Panchal FXStreet

USD/CAD fades the previous day’s rebound, easing to 1.2680 by the press time of the pre-European session on Wednesday.

In doing so, the Loonie pair seesaws between 50-SMA and 200-SMA, keeping the previous day’s bullish chart confirmation.

Given the bullish MACD giving the back to the falling wedge breakout, USD/CAD prices are likely to overcome the immediate hurdle surrounding the 1.2715 threshold, comprising 50-SMA.

Following that, 1.2745 may offer an intermediate halt during the pair’s run-up towards the monthly peak surrounding the 1.2900 round figure.

However, any further upside will be challenged by the yearly top of 1.2949, as well as the 1.3000 psychological magnet.

Meanwhile, the 200-SMA level of 1.2660 and the stated wedge’s resistance line, now support near 1.2630, will restrict short-term USD/CAD declines.

Also acting as a downside filter is the short-term falling support line, part of the falling wedge close to 1.2575.

USD/CAD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2682
Today Daily Change	-0.0004
Today Daily Change %	-0.03%
Today daily open	1.2686

Trends
Daily SMA20	1.2669
Daily SMA50	1.2617
Daily SMA100	1.2442
Daily SMA200	1.2522

Levels
Previous Daily High	1.2708
Previous Daily Low	1.2594
Previous Weekly High	1.2896
Previous Weekly Low	1.2634
Previous Monthly High	1.2949
Previous Monthly Low	1.2453
Daily Fibonacci 38.2%	1.2664
Daily Fibonacci 61.8%	1.2637
Daily Pivot Point S1	1.2618
Daily Pivot Point S2	1.2549
Daily Pivot Point S3	1.2504
Daily Pivot Point R1	1.2731
Daily Pivot Point R2	1.2776
Daily Pivot Point R3	1.2845

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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