- The USD / CAD bulls are trying to defend the support of the 50 hourly SMA.
- The pair shows the breaking of an ascending wedge on the 1 hour chart.
- The rejection at the 200 SMA caused a U-turn in the pair.
USD / CAD is moving lower in recent hours after the bulls failed to break through powerful resistance at the 200 hourly moving average, now 1.2175.
With the corrective decline, the pair has broken an ascending wedge on the 1 hour chart after it lost the crucial support at 1.2158. That zone is the confluence of the rising trend line and the 21-hour SMA.
The slightly bullish 50 SMA at 1.2133 is currently testing bears’ engagement. A break out of this level could expose the 100 SMA at 1.2118.
The RSI is sloping lower within the bearish region, suggesting that there is room for further declines.
Any pullback to the upside will have to break the 1.2160 resistance zone, the previous support now turned into a bullish barrier.
A sustained move above this level could have buyers target the 200 hourly SMA once again.
At the time of writing, the major pair is shedding 0.20% on the day, trading around 1.2135 amid broad US dollar weakness. Additionally, the 1% bounce in WTI prices boosts the loonie, putting downward pressure on the pair. US oil recovered this Friday after falling 3% the previous day.
USD / CAD 1 hour chart
USD / CAD additional levels
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