USD/CAD Price Analysis: Tumbles to test 100-DMA after precious week’s falling wedge fakeout USDCAD Technical Analysis Currencies
The oil price recovery and the US dollar’s weakness weighed heavily on the spot.Having faced rejection once again near 1.2810 in the previous week.The downturn in the currency pair was helped by the rebound in WTI prices and the renewed US dollar’s weakness, as investors assessed the mixed American labor market report released on Friday.disappointed with 199K in December, although the hourly wages was a big surprise.
That said, the price is now testing the horizontal 100-DMA at 1.2627, having breached the 50-DMA support at 1.2693, where the wedge resistance-turned-support aligns. The 14-day Relative Strength Index is holding well below the midline, backing the bearish potential.Recapturing the abovementioned powerful resistance near 1.2690 is critical to initiating any meaningful recovery.USD/CAD: Additional levels to consider
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.