USD/CAD Price Analysis: Retreats towards 1.2950 inside weekly bullish channel

• USD/CAD snaps two-day uptrend, stays pressured towards immediate support line.
• Bullish chart pattern, steady RSI keeps buyers hopeful, 1.3080 is the key hurdle.
• Downside break of mid-month low could convince bears.

USD/CAD extends pullback from 1.3017 towards dropping back inside a weekly ascending trend channel formation. That said, the Loonie pair stays depressed at around 1.2980 by the press time of Friday’s Asian session.

A two-day-old support line joins the 50% Fibonacci retracement of June 16-17 upside to highlight 1.2970 as the short-term key support.

Following that, the aforementioned channel’s lower line, at 1.2935 by the press time, will be crucial for the USD/CAD bears to watch.

Should the quote remains bearish past 1.2935, the odds of witnessing a south-run towards the mid-June trough surrounding 1.2860 can’t be ruled out.

Alternatively, the upper line of the stated channel, around 1.3015, restricts short-term advances of the USD/CAD pair.

Following that, the double tops around 1.3080 will be important to track as a clear upside break of the 1.3080 hurdle could theoretically propel the prices towards 1.3650. However, the late 2020 peak near 1.3420 may offer intermediate halts during the run-up.

To sum up, USD/CAD braces for short-term declines but the overall trend remains bullish.

USD/CAD: Hourly chart

Trend: Bullish