USD/CAD Price Analysis: 21-DMA challenges rising wedge confirmation above 1.3700

• USD/CAD struggles to extend the bounce off 21-DMA near fortnight low.
• Confirmation of bearish chart pattern, downbeat MACD signals favor sellers.
• Recovery remains elusive unless crossing three-week-old resistance line.

USD/CAD fades bounce off a short-term moving average while keeping the bearish break of a rising wedge around 1.3740 during Wednesday’s Asian session. In doing so, the Loonie pair stays depressed near the two-week low.

Given the bearish MACD signals and the confirmation of the five-week-old rising wedge formation on Monday, USD/CAD is likely to remain on the bear’s radar unless successfully crosses the 1.3850 immediate hurdle comprising the wedge’s lower line.

Even if the quote rises past 1.3850, the 1.4000 psychological magnet and the upper line of the bearish chart pattern, around 1.4030 by the press time, will challenge the upside momentum.

However, a clear run-up beyond 1.4030 won’t hesitate to challenge the May 2020 peak surrounding 1.4175.

Alternatively, the 21-DMA level near 1.3690 restricts the immediate downside of the USD/CAD pair before directing the sellers toward the monthly low of around 1.3500.

It should be noted that the 50-DMA, close to 1.3320 at the latest, appears strong support for the bears to conquer past 1.3500.

Overall, USD/CAD is likely to remain on the bear’s radar despite the latest rebound from the 21-DMA support.

USD/CAD: Daily chart

Trend: Pullback expected