Eases from intraday top on Doji below 200-HMA
- USD/CAD consolidates daily gains, struggles for clear direction of late.
- RSI pullback, bearish candlestick and inability to cross the key moving average favor sellers.
USD/CAD takes a U-turn from the day’s top, up 0.05% intraday around 1.2627, heading into Thursday’s European session.
The candlestick remains lackluster, mildly bid, since Tuesday. However, the latest pullback could be linked to a bearish candlestick formation following the quote’s failures to cross the 200-HMA.
Also favoring the intraday sellers of USD/CAD is the RSI line that eases from nearly overbought conditions.
Hence, the Loonie pair is up for further consolidation of the latest gains, which in turn highlights the 1.2600 threshold as the immediate support.
It should be noted, however, that multiple levels restrict the quote’s downside past 1.2600 around 1.2580-75, a break of which can quickly drag the USD/CAD prices towards the 1.2500 round figure.
Meanwhile, an upside clearance of 200-HMA level of 1.2636 needs to cross the August 27 swing low, around 1.2660 to convince the pair buyers.
USD/CAD: Hourly chart
Trend: Pullback expected