Technical Analysis: 200-candle SMA probes USDCAD bulls banking on BPC formation
Despite keeping the break (B) of the one-month-old falling trend line, portrayed on Monday, USDCAD bulls need to defy the pullback (P) from 200-bar SMA to justify the latest bounce off resistance-turned-support, continuation (C) point. Considering the anticipated dovish tone from the BOC, coupled with upbeat MACD and RSI, the quote is up for clearing the 1.3230 SMA hurdle, which in-turn confirms the bullish chart pattern and escalates the run-up towards 1.3260 and the 1.3300 threshold. However, the pair's upside past-1.3300 depends upon how well it sustains the break of 1.3345-50 resistance that holds the key to the September high of 1.3418.
Meanwhile, a pullback to the 1.3130 support line, previous resistance, can keep the buyers hopeful, a break of which could challenge the monthly low near 1.3080. Should bears remain dominant past-1.3080, the 1.3000 round-figure will be on their radars. Though, the 1.3040 level may offer an intermediate rest to the intraday sellers between 1.3080 and the 1.3000 mark.