USD/CAD Technical Analysis: Upside break of a descending broadening wedge likely

• The USD/CAD is trapped in a descending broadening wedge, the hourly chart shows.
• The bullish price-relative strength index (RSI) divergence favors upside break of the wedge pattern.

Hourly chart

Spot Rate: 1.3135

Daily High: 1.3149

Daily Low: 1.3112

Trend: Bullish break likely

Resistance

R1: 1.3170 (50-hour moving average)

R2: 1.3176 (resistance on hourly chart)

R3: 1.3204 (100-hour moving average)

Support

S1: 1.3112 (session low)

S2: 1.3058 (38.2% Fib R of April low – June high)

S3: 1.30 (psychological support)