USD/CAD Price Analysis: Stays below 1.3600 to confirm rising wedge on 4-hour chart
- USD/CAD trades near one-week low after confirming a bearish chart pattern.
- MACD conditions, U-turn from 200-bar SMA also favor the sellers.
- A three-week-old resistance line will follow, the formation support and key SMA to challenge the buyers.
USD/CAD takes rounds to 1.3570/80 since the start of Wednesday’s Asian session. In doing so, the quote remains around the lowest levels since June 24 after confirming a bearish chart formation called a rising wedge. Other than the chart patterns, the bearish signals by the MACD and the pair’s pullback from 200-bar SMA also suggest further downside of the USD/CAD prices.
As a result, sellers may aim for 1.3500 as immediate support during the further declines. However, 1.3490/85 area comprising June 09 top and June 23 low could offer breathing space to the pessimists.
Given the pair’s extended fall past-1.3485, the previous month’s bottom close to 1.3315 could return to the chart.
Alternatively, the quote’s bounce back beyond the 1.3590 support-turned-resistance may target 1.3650 and 200-bar SMA level of 1.3665.
However, the stated bearish formation’s upper-line around 1.3720 could question further recoveries.
USD/CAD four-hour chart
Trend: Bearish
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.