USD/CAD Price Analysis: Picks up bids above 1.2050 inside immediate falling channel
- USD/CAD portrays corrective pullback inside a bearish chart pattern.
- MACD flirts with bulls but needs a clear upside break of the channel.
- Previous resistance line from late April adds to the downside support.
- Multiple supports, easing bearish bias suggest further recovery.
USD/CAD extends the previous day’s bounce off May 2015 low inside a three-day-old falling channel amid Wednesday’s Asian session. The Loonie pair recently pick up bids near 1.2066 as traders near the channel’s resistance.
Given the pair’s sustained recovery from the stated channel’s support line, not to forget clear trading above the prior resistance line from April 21, join receding bearish bias of MACD to keep USD/CAD buyers hopeful.
Though, a sustained rise past-1.2085 becomes necessary for the bulls to target the previous week’s top surrounding 1.2200.
It should, however, be noted that any further upside will need to cross the early May lows close to 1.2265 for conviction.
Meanwhile, the channel’s support and a bit broader previous resistance line, respectively around 1.1990 and 1.1975, can keep offering intermediate bounce during the USD/CAD south-run.
USD/CAD four-hour chart
Trend: Further recovery expected