USD/CAD Price Analysis: Retreats to 1.3600 inside rising wedge
- USD/CAD remains pressured towards 1.3520 support confluence inside six-week-old rising wedge.
- 50-day EMA joins wedge’s lower line to highlight 1.3520 support.
- Looming bear cross on MACD, bearish chart formation favor sellers.
USD/CAD holds lower ground near 1.3610 as it braces for the three-day downtrend during Wednesday’s Asian session. In doing so, the Loonie pair drops inside a 1.5-month-old rising wedge bearish chart pattern.
That said, the impending bear cross on the MACD adds strength to the downside bias, in addition to the rising wedge formation.
As a result, the quote’s downside break of the 1.3600 threshold appears imminent.
However, a convergence of the 50-day Exponential Moving Average (EMA) and the lower line of the stated wedge, highlights the 1.3520 as the key support.
In a case where the USD/CAD prices drop below 1.3520, the odds of witnessing gradual declines towards the 50% and 61.8% Fibonacci retracement of the pair’s August-October upside, 1.3350 and 1.3200 in that order, can’t be ruled out.
Should the quote remains bearish past 1.3200, the theoretical target of the rising wedge confirmation, around 1.3050, gains the major attention.
On the flip side, recovery moves remain elusive unless the USD/CAD pair crosses the 1.3700 round figure.
Even so, the upper line of the stated wedge, near 1.3775 by the press time, could challenge the pair buyers.
Following that, multiple resistances near 1.3810 and 1.3850 could test the USD/CAD bulls before directing them to the yearly high marked in October around 1.3980.
USD/CAD: Daily chart
Trend: Further downside expected
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.
