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Sideways near 1.3020, daily chart shows bearish fatigue

  • The USD / CAD daily chart shows signs of bearish exhaustion.
  • Tuesday’s high is the level to beat for the bulls.

USD / CAD remains largely unchanged on the day near the 1.3020-30 level, moving within a tight range at the start of the European session on Wednesday and staying within Tuesday’s highs and lows of 1.3051 and 1.2985.

The long wicks of the two previous daily candles indicate the inability of sellers to force a daily close at the lows of the day. That is a sign of bearish exhaustion, especially as the long wick candles have appeared after a notable drop from 1.3390 to 1.2928. The daily inside candle on Tuesday is also indicative of the weakening of the bearish momentum.

Ultimately, the immediate bearish outlook has been neutralized. An upside turn would be confirmed if the pair ends above 1.3050 on Wednesday. On the other hand, acceptance below Monday’s low of 1.2928 would imply a bearish continuation.

USD / CAD daily chart


Credits: Forex Street

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