Technical Analysis: Six-week-old support line, 200-SMA test USDCAD bears

USDCAD sellers cheer a rising wedge bearish pattern confirmation at the yearly top amid downbeat MACD and RSI signals to keep the reins during the last days of 2021. However, a clear downside break of an ascending trend line from November 10, near 1.2735, followed by the 200-SMA surrounding 1.2715, becomes necessary to witness further losses. In that case, the monthly low near 1.2605, also comprising mid-November top, will be a tough nut to crack for the pair sellers.

Meanwhile, the corrective pullback may aim for the early month tops near 1.2855 before challenging the support-turned-resistance line of the wedge, around 1.2920. Should the USDCAD buyers manage to stay in command past 1.2920, they won’t hesitate to refresh the yearly top while eyeing another battle with an ascending resistance line from December 03, close to 1.3010.

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