- USD/CAD hit resistance at 1.3155-60
- The set-up favours bearish traders with further losses expected.
- Only a sustained breakthrough the mentioned barrier will negate the near-term bearish bias.
USD/CAD pair failed to build on its early move higher and retreated around 50 pips from daily highs. The pair found some support around 1.3100. The intraday advance once again struggled near a key resistance, of a one-week-old descending trend-line and 200-hour SMA.
A meaningful break below 1.3100 could see more bears jump in opening the door to a deeper selloff. Technical indicators on the hourly and daily charts remained negative building the case for additional weakness.
Hence, a fall to six-week lows close to 1.3080 hit on Wednesday, could be on the cards amid fresh selling in the USD. Some follow-through selling could see the USD/CAD pair extend losses to accelerate the slide further towards the key 1.3000 psychological mark.
Any move higher could face resistance at 1.3155-60 a breakthrough will negate any near-term negative bias . The pair might then aim to surpass the 1.3200 mark and test the 1.3235-40 supply zone.