• USD/CAD portrays corrective pullback inside a bearish chart pattern.
  • MACD flirts with bulls but needs a clear upside break of the channel.
  • Previous resistance line from late April adds to the downside support.
  • Multiple supports, easing bearish bias suggest further recovery.

USD/CAD extends the previous day’s bounce off May 2015 low inside a three-day-old falling channel amid Wednesday’s Asian session. The Loonie pair recently pick up bids near 1.2066 as traders near the channel’s resistance.

Given the pair’s sustained recovery from the stated channel’s support line, not to forget clear trading above the prior resistance line from April 21, join receding bearish bias of MACD to keep USD/CAD buyers hopeful.

Though, a sustained rise past-1.2085 becomes necessary for the bulls to target the previous week’s top surrounding 1.2200.

It should, however, be noted that any further upside will need to cross the early May lows close to 1.2265 for conviction.

Meanwhile, the channel’s support and a bit broader previous resistance line, respectively around 1.1990 and 1.1975, can keep offering intermediate bounce during the USD/CAD south-run.

USD/CAD four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price 1.2066
Today Daily Change -2 pips
Today Daily Change % -0.02%
Today daily open 1.2068
 
Trends
Daily SMA20 1.2279
Daily SMA50 1.2439
Daily SMA100 1.2572
Daily SMA200 1.2837
 
Levels
Previous Daily High 1.2137
Previous Daily Low 1.2061
Previous Weekly High 1.2203
Previous Weekly Low 1.2046
Previous Monthly High 1.2654
Previous Monthly Low 1.2266
Daily Fibonacci 38.2% 1.209
Daily Fibonacci 61.8% 1.2108
Daily Pivot Point S1 1.204
Daily Pivot Point S2 1.2013
Daily Pivot Point S3 1.1965
Daily Pivot Point R1 1.2116
Daily Pivot Point R2 1.2164
Daily Pivot Point R3 1.2191

 

 

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