USDCAD tease falling wedge breakout near multi-month low
USDCAD reverses Friday’s losses inside a bullish chart pattern, falling wedge, on the daily play. However, buyers need a clear upside break of 1.2100, not to forget the previous support line from March 18 close to 1.2180, to retake controls. Following that, the USDCAD rally towards 50-DMA level near 1.2285 and then to the previous month’s top near 1.2350 can’t be ruled out. It’s worth noting that the RSI is gradually recovering from the oversold area and the bullish formation is near the lowest since May 2015, which in turn amplifies the breakout in favor of buyers, if sustained.
Meanwhile, 1.2050 and 1.2030 can entertain USDCAD sellers ahead of testing them with the 1.2000 psychological magnet. Also likely to challenge the pair bears is the stated chart formation’s support line near 1.1990. During the quote’s further weakness below 1.1990, May 2015 lows near 1.1920 become the key as a clear breakdown of the same will make USDCAD vulnerable to slump towards March 2014 high near 1.1280.
Meanwhile, 1.2050 and 1.2030 can entertain USDCAD sellers ahead of testing them with the 1.2000 psychological magnet. Also likely to challenge the pair bears is the stated chart formation’s support line near 1.1990. During the quote’s further weakness below 1.1990, May 2015 lows near 1.1920 become the key as a clear breakdown of the same will make USDCAD vulnerable to slump towards March 2014 high near 1.1280.