Technical Analysis: USDCAD buyers should look for entries as bears struggle around 1.2900

Technical Analysis: USDCAD buyers should look for entries as bears struggle around 1.2900

Not only the support line of a five-week-old falling wedge but the short-term channel's lower line also challenges USDCAD bears off-late. With the RSI and MACD both suggesting weakness in the downside momentum, buyers seem to flex muscles for entry. Though, 1.2960 and the falling wedge resistance, at 1.3000 now, become immediate upside hurdles to clear. Also challenging the pair's near-term advances is the upper line of the stated channel, currently around 1.3015. It should, however, be noted that a sustained break past-1.3015 will enable the bulls to probe the November 13 high near 1.3155.

Meanwhile, the aforementioned wedge and channel can keep teasing the bears around 1.2900 and 1.2890 respectively. During the quote's downside past-1.2900, RSI conditions can play their role to trigger a bounce, if not then October 2018 low near 1.2780 will gain market attention. Overall, the sellers seem tired and the US dollar is likely to consolidate after heavy losses in the last few weeks. Additionally, prices of oil, Canada's main export may also step back as OPEC+ eyes rolling back their output cuts in early 2021, which in turn can weigh on the CAD as oil is Ottawa's major export.

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