USD/CAD technical analysis: Remains depressed near 1-1/2 week lows, below 1.3300 handle

October 11, 2019 Off By admin-445
  • Repeated failures near 1.3345 resistance formed a bearish double-top chart pattern.
  • The prevalent USD selling bias support prospects for a further depreciating move.

Having once again failed near the 1.3345 supply zone, the USD/CAD pair witnessed some aggressive selling on Thursday and tumbled below the 1.3300 round-figure mark.
 
Repeated rejections near the mentioned barrier formed a bearish double-top pattern on short-term charts, suggesting that the pair might have topped out in the near-term.
 
The pair struggled to gain any respite and remained depressed, well within the striking distance of 1-1/2 week lows through the Asian session on the last day of the week.
 
Moreover, oscillators on hourly charts have been gaining negative momentum and further adds credence to the bearish formation, supporting prospects for additional weakness. 
 
However, technical indicators on the daily charts have just managed to hold in the bullish territory and warrant some caution before placing any aggressive bets.

Hence, it will be prudent to wait for some follow-through selling below 200-hour SMA before positioning for a further depreciating move amid the prevalent USD selling bias.

USD/CAD 1-hourly chart

fxsoriginal

 

Source: www.forexcrunch.com