- The USD / CAD recovery is capped below 1.3100 so far on Friday.
- The technical setup on the 1-hour chart remains in favor of the bears.
- The focus is on global market sentiment and Canadian data for fresh momentum.
USD / CAD has halted its recovery from Thursday’s low of 1.3062 and has encountered a bunch of healthy resistance levels, making it difficult for the bulls to regain control.
The 1 hour chart shows that the recovery lost steam at 1.3088, where the bearish 21 and 100 hour moving averages converge.
Following the rejection in that region, the price has fallen below the support of the 50 and 200 hourly moving averages, pointing to a further decline.
The RSI on the 1 hour chart is weakening just below the 50 level, which suggests that the bearish bias remains intact.
Therefore, a test of Thursday’s low at 1.3052 cannot be ruled out if selling pressure accelerates.
The next downside target awaits at 1.3034, Wednesday’s low.
On the other hand, 1.3085 offers immediate resistance. That level is the meeting point of the 50 and 200 hour moving averages.
Meanwhile, the aforementioned barrier at 1.3088 is the level to beat for the bulls.
USD / CAD 1 hour chart
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