USD/CAD Price Analysis: Establishes beneath ascending triangle pattern, downside near 1.2400

• Loonie bulls seek a death cross to attain a dominant position.
• The RSI (14) in a bearish range of 20.00-40.00 adds to the downside filters.
• Auctioning below the ascending triangle formation is making the loonie bulls hopeful.

The USD/CAD pair is balanced in a range of 1.2430-1.2593 from the last three trading sessions after remaining imbalance due to an intensified sell-off from March 15 high at 1.2871.

On the daily scale, the USD/CAD has settled below the ascending triangle formation whose upper end is capped around 1.2960 while the ascending trendline is placed from 18 May 2021 low at 1.2013. A breaking below an ascending triangle formation is followed by volume and volatility expansion in the asset. The death cross from the 50 and 200-period Exponential Moving Averages (EMAs) is in a queue and is likely to place around 1.2650.

The Relative Strength Index (RSI) (14) has settled in a 20.00-40.00 range, which signals an impulsive way and a dominant position for the loonie bulls going forward.

Should the asset drops below Thursday’s low at 1.2464, 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