- USD / CAD is targeting a breakout of the ascending triangle on the 15-minute chart.
- The pair is moving below all key simple moving averages.
- The RSI is pointing lower, below the 50.00 level.
USD / CAD has recovered slightly from a drop to the weekly lows of 1.3169, but the outlook does not look constructive in the near term.
Despite the rapid recovery, the pair still remains below the 1.3200 level as it is on the verge of a downside breakout of the ascending triangle, as seen on the 15-minute chart.
A sustained break below the uptrend line support at 1.3176 will validate the pattern, paving the way for a test of the 1.3150 level.
Supporting the case for further declines, the RSI on the 15-minute chart is moving in the bearish region while pointing lower at 37.91 points. Additionally, USD / CAD is moving below all major simple moving averages, suggesting that the decline looks more compelling amid the lack of healthy support levels.
On the other hand, the confluence of the 21 and 50 SMAs on the 15-minute chart at 1.3183 will limit the immediate rally. A break above this level could target the 100-period SMA at 1.3190.
Higher up, buyers need to break above the 200-period SMA at 1.3206 to nullify the short-term bearish momentum.
USD / CAD 15 minute chart
Credits: Forex Street
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