USD/CAD Price Analysis: Defending the critical falling trendline support

USD/CAD Price Analysis: Defending the critical falling trendline support

  • USD/CAD stalls its three-day bearish momentum.
  • A minor bounce in the offing, as depicted by the 1D chart.
  • Bearish bias intact while below the 21-DMA at 1.3048.

USD/CAD has turned positive for the first time in four days this Wednesday, as the bulls are attempting a minor recovery amid a sell-off in WTI prices.

The pause in broad-based US dollar selling is also aiding a tepid recovery in the major, as the price holds well above the critical three-month-old falling trendline support aligned at 1.2903 on the daily chart.

A breach of the latter could trigger a sharp sell-off towards multi-month lows sub-1.2850 levels.

The 14-day Relative Strength Index (RSI) has recovered from lower levels, now trading at 33.28, suggesting that a bounce cannot be ruled out in the session ahead.

Recapturing the 1.2950 barrier is critical to unleashing additional recovery gains. Tuesday’s high of 1.3010 will be next on the buyers’ radars en route the 21-daily moving average (DMA) at 1.3047.

USD/CAD: Daily chart

USD CAD 637424742992070186

Credit: FX Street

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