USD/CAD Remains Vulnerable, Near Ascending Triangle Surface

The USD/CAD pair has attracted significant offers at 1.2593, which seems a failed attempt to come out of the woods as the asset has remained vulnerable in the past few trading sessions.

On the weekly scale, USD/CAD has been slipped below the ascending triangle formation. Usually, breaking below the ascending triangle results in an expansion of volatility and volumes in the asset going forward.

The upper end of the ascending triangle has remained capped at around 1.2960 while the trendline of the lower end of the ascending triangle formation is placed from 18 May 2021 low at 1.2013. It is worth noting that after the breaking below the ascending triangle formation the attempt by the major to move back into the ascending triangle has been rejected by the responsive sellers at 1.2593.

The asset is holding below the 200-period Exponential Moving Average (EMA), which adds to the downside filters. The Relative Strength Index (RSI) (14) is hovering near 40.00 and the asset is likely to attract initiative selling if the RSI (14) skids below 40.00.

Should the asset drops below Friday’s low at 1.2465, the major will be dragged towards the round level support at 1.2400, followed by the 29 October 2021 low at 1.2328.

On the flip side, bulls can become worthy if the asset surpasses last week’s high at 1.2624, which will send the asset towards March 11 low at 1.2694. Breach of the latter will send the pair towards round level resistance at 1.2800.