USD/CAD Price Analysis: Consolidate losses around 1.3150 inside rising wedge on hourly chart
- USD/CAD keeps Tuesday’s gradual recovery from 1.3099 but repeatedly eases from a two-day-old resistance line, forming a bearish chart pattern.
- MACD/RSI both signal traders’ indecision even as the pair holds above early-September lows flashes during the initial week.
- Bears can target September low during the further declines, bulls will have 200-HMA on radar if defying the rising wedge.
USD/CAD gradually recovers the early-week losses while taking rounds to 1.3150/45 at the start of Thursday’s Asian session. The pair prints gains during the last two consecutive days while bouncing off the lowest since September 08 flashed on Tuesday. Even so, it portrays a bearish chart pattern, rising wedge, on the hourly formation and keeps the sellers hopeful.
It should, however, be noted that 100-HMA and the support line of the pattern, respectively around 1.3140 and 1.3125, still offer chances of the pair’s bounce ahead of opening gates for the sellers.
Following the downside break of 1.3125, the 1.3100 threshold may offer an intermediate halt during the south-run towards the previous month’s bottom surrounding the 1.3000 psychological magnet.
On the contrary, an upside clearance of the pattern’s resistance line, at 1.3168 now, can escalate the recovery moves towards the 200-HMA level of 1.3207.
Though, any further upside past-1.3207 will enable USD/CAD bulls to attack 1.3250 resistance comprising 61.8% Fibonacci retracement level of October 07-13 downside,
USD/CAD hourly chart
Trend: Bearish