USD/CAD Price Analysis: Struggles to justify downside break of short-term triangle above 1.3200
- USD/CAD keeps bounces off 1.3192 despite failing to cross 1.3230 immediate resistance.
- Bullish MACD, normal RSI conditions suggest further recovery.
- A confluence of 100-HMA, weekly resistance line offers strong upside barrier.
USD/CAD seesaws around 1.3220 during the pre-Tokyo open trading on Friday. The loonie pair recently slipped below an immediate descending triangle. However, the downside couldn’t last longer than 1.3192 as RSI turned oversold around then. The following consolidation gains support from upbeat MACD to suggest further recovery moves.
Though, buyers are less likely to take a risk of entry unless the pair successfully crosses 1.3230, which if happens will help the bulls attack Tuesday’s low near 1.3270.
In a case where the pair remains firmer past-1.3270, a joint to 100-HMA and a descending trend line form Monday, at 1.3300, will be the key to watch.
On the downside, 1.3200 and the recent low near 1.3190 may entertain the sellers during the fresh declines.
If bears refrain from respecting momentum indicators around 1.3190, January 23 high near 1.3170 can offer an additional filter to the downside before highlighting the 1.3100 threshold.
USD/CAD hourly chart
Trend: Pullback expected