USD/CAD Technical Analysis: Surges to fresh 4-week high, inside short-term rising wedge
- USD/CAD holds on to recovery gains beyond 61.8% Fibonacci retracement of October month downpour.
- 200-bar SMA acts as immediate key support ahead of rising wedge’s lower line.
While extending its sustained run-up beyond 200-bar SMA, USD/CAD rises to the fresh four weeks high of 1.3242 by the press time of Asian session on Tuesday.
Even so, prices are yet to clear an upward sloping trend-line since October 17, at 1.3267 now, to defy the bearish chart pattern and stretch the north-run towards 1.3300 and October month tops near 1.3350.
Alternatively, pair’s slip beneath 61.8% Fibonacci retracement level of 1.3230 highlights 1.3195/90 as the key support confluence as it comprises 50% Fibonacci retracement level and 200-bar Simple Moving Average (SMA).
During the quote’s additional weakness below 1.3190, the bearish formation’s support line around 1.3180 becomes the key as the downside break of which could recall bears targeting 1.3040 and 1.3000 round figure.
However, a 23.6% Fibonacci retracement level of 1.3110 could offer an intermediate halt to the pair’s downside between 1.3180 and 1.3040.
USD/CAD 4-hour chart
Trend: pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
