USD/CAD Price Analysis: Settles below Ascending Triangle formation, 1.2300 eyed

• Auction below the ascending triangle formation is making the loonie bulls hopeful.
• Loonie bulls await a death cross from 50 and 200-period EMAs for further validation.
• The RSI (14) has registered a fresh low around 38.00, which signals a fresh downside impulsive wave.

The USD/CAD pair has tumbled below 1.2500 after failing to turn the strong upside move of Monday into a bullish reversal. The asset is settling below 1.2500 and is likely to extend its losses amid broader weakness in the greenback.

On the daily scale, the USD/CAD has settled below the ascending triangle formation whose upper end is capped around 1.2960 while the trendline of the lower end is placed from 18 May 2021 low at 1.2013. Usually, a violation of an ascending triangle formation on the downside fetches volume expansion and displays wide range ticks.

Loonie bulls await a death cross from 50 and 200-period Exponential Moving Averages (EMAs), which are trading at 1.2662 and 1.2645 respectively. This will put loonie bulls in a dominant position.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped below 40.00 from its previous oscillating range of 40.00-60.00, which signals a bearish move ahead. The RSI (14) has registered a fresh low of around 38.00.

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, greenback 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.

USD/CAD daily chart