- USD/CAD refreshes intraday low, stays mildly bid after the previous day’s bullish candlestick formation.
- Oversold RSI backs trend reversal but previous support line from late January defends bears.
USD/CAD takes offers around 1.2090, down 0.08% intraday, amid Wednesday’s Asian session. The pair marked a Doji candlestick, suggesting corrective pullback of the currently bearish trend, amid oversold RSI.
Although the USD/CAD bears seem tiring of late, a bounce needs to cross a downward sloping trend line from January 21, around 1.2150, to convince short-term buyers.
Also acting as an immediate upside hurdle is the 10-day SMA level of 1.2200.
However, a clear break above 1.2200 on a daily closing will help the USD/CAD bulls to aim for the monthly top surrounding 1.2350.
On the flip side, the recent low around 1.2080 and the year 2017 bottom close to 1.2060 could entertain USD/CAD sellers ahead of directing them to the 1.2000 psychological magnet.
It’s worth mentioning that any further weakness below 1.2000 will not hesitate to attack May 2015 low surrounding 1.1920.
USD/CAD daily chart
Trend: Corrective pullback expected