USD/CAD Price Analysis: At make or break near 1.2540, hovers outside the ascending triangle formation

• USD/CAD has slipped below ascending triangle formation, which may strengthen loonie bulls further.
• Slippage of the RSI (14) below 40.00 will add to the downside filters.
• A bearish cross of the 20 and 200-period EMAs at 1.2707, points more weakness ahead.

The USD/CAD pair has remained vulnerable in the past few trading sessions. The major has eroded around 2.20% in the past eight sessions after sensing intensified selling pressure near March 15 high at 1.2871.

On the daily scale, USD/CAD is auctioning in an ascending triangle formation in which the upside remains capped while the asset updates its lows after some intervals. The upside of the ascending triangle formation is capped around 21 December 2020 high at 1.2735, which coincides with 20 August 2021 high and 20 December 2021 high. While, the lower trendline is placed from 1 June 2021 low at 1.2007, which follows 21 October 2021 low at 1.2288 and January 13 low at 1.2454.

A bearish cross of the 20 and 200-period Exponential Moving Averages (EMAs) at 1.2707, points more weakness ahead.

The Relative Strength Index (RSI) (14) is on the verge of dropping below 40.00, which is likely to add to the downside filters.

Should the asset slip below Wednesday’s low at 1.2542, loonie bulls may witness significant bids, which will drag the pair near the psychological support and 27 October 2021 high at 1.2500 and 1.2432 respectively.

On the flip side, greenback bulls may take over the control if the asset oversteps Tuesday’s high at 1.2624. This will send the pair towards 20-period EMA at 1.2675, followed by the psychological resistance at 1.2700.

USD/CAD daily chart