- USD/CAD is trapped in a bearish channel.
- A channel breakout would confirm a short-term bullish reversal.
USD/CAD is having a tough time piercing the resistance of the upper edge of the falling channel for the second day.
As of writing, the pair is trading at 1.3135, having faced rejection at the falling channel resistance, currently at 1.3146. The channel resistance located at 1.3155 yesterday proved a tough nut to crack.
A close above 1.3135 today would confirm a bearish channel breakout or bearish-to-bullish trend change and open the doors to 1.3262 (200-day moving average).
A repeated failure to beat the channel resistance may embolden sellers, yielding a drop to the 21-day moving average, currently at 1.3085.
Daily chart
Trend: Neutral
Pivot levels
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