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  • USD/CAD’s daily chart shows signs of bearish exhaustion.  
  • Tuesday’s high is the level to beat for the bulls.

USD/CAD is currently trading largely unchanged on the near 1.3022, having hit a high of 1.3043 in early Asia. So far today, the price action has been restricted well within Tuesday’s high and low of 1.3051 and 1.2985.  

The long tails attached to the previous two daily candles indicate inability on the part of the sellers to force a daily close at the lowest price point of the day.  That’s a sign of bearish exhaustion, especially since the long-tailed candles have appeared following a notable sell-off from 1.3390 to 1.2928.  Tuesday’s inside bar daily candle is also indicative of the weakening of the downward momentum.  

All things considered, the immediate bearish outlook stands neutralized. A reversal higher would be confirmed if the pair ends Wednesday above 1.3050. Alternatively, acceptance under Monday’s low of 1.2928 would imply a bearish continuation.  

Daily chart

Trend: Neutral

Technical levels