- USD/CAD remains stuck in a falling channel, as per the hourly chart.
- The 100- and 200-hour averages are teasing a bullish crossover.
The USD/CAD pair is sitting just above the 20-day average at 1.4036 at press time, having hit a high of 1.4078 in early Asia.
The pair has pulled back from session highs despite the impending bullish crossover of the 100- and 200-hour averages.
While the impending bullish cross suggests the path of least resistance is to the higher side, Monday’s Doji candle and Tuesday’sbearish follow through suggest otherwise. The pair, therefore, risks falling to the 200-hour average at 1.4022 – 1.40.
A channel breakout, if confirmed, would imply an end of the drop from the March 3 high of 1.4151. However, stronger evidence of bullish breakout would be above Monday’s high of 1.4153.
Hourly chart
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Trend: Neutral
Technical levels
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