USD/CAD Price Analysis: Rising wedge keeps sellers hopeful, 1.2700 eyed

USD/CAD pares intraday losses, stays inside bearish chart pattern.
Sustained trading below 200-HMA, steady RSI also favor sellers.

Anil Panchal FXStreet

USD/CAD licks wounds near 1.2715 during early Monday morning in Europe. In doing so, the Loonie pair portrays a rising wedge bearish formation on the one-hour chart.

In addition to the aforementioned one-week-old rising wedge, the quote’s failure to cross the 200-HMA and an absence of extreme RSI conditions keep the sellers hopeful.

However, a clear downside break of the 1.2700 level becomes necessary for the USD/CAD bears to refresh the monthly low surrounding 1.2607 while aiming for the 1.2570 theoretical target.

During the fall, 23.6% Fibonacci retracement level of December 03-08 downside, near 1.2660, may offer an intermediate halt.

Alternatively, 200-HMA and the upper line of the wedge, respectively around 1.2740 and 1.2755, will test the USD/CAD buyers before directing them to the monthly peak surrounding 1.2850.

In a case where the USD/CAD bears keep reins past 1.2570, lows marked during September and late July, near 1.2422 and 1.2495 in that order, will gain the market’s attention.

USD/CAD: Hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2717
Today Daily Change	-0.0004
Today Daily Change %	-0.03%
Today daily open	1.2721

Trends
Daily SMA20	1.2695
Daily SMA50	1.2541
Daily SMA100	1.2583
Daily SMA200	1.2478

Levels
Previous Daily High	1.2739
Previous Daily Low	1.268
Previous Weekly High	1.2843
Previous Weekly Low	1.2608
Previous Monthly High	1.2837
Previous Monthly Low	1.2352
Daily Fibonacci 38.2%	1.2717
Daily Fibonacci 61.8%	1.2702
Daily Pivot Point S1	1.2687
Daily Pivot Point S2	1.2654
Daily Pivot Point S3	1.2628
Daily Pivot Point R1	1.2747
Daily Pivot Point R2	1.2773
Daily Pivot Point R3	1.2807

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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