USD/CAD – Offered at 100-DMA

USD/CAD once again failed to take out 100-DMA level of 1.2923 in early Asia and is now closing-in on 1.29 handle.

Falling tops on daily chart

Even though the spot appears largely stuck in a sideways range, a closer look reveals the bulls are struggling, given the falling tops within congestion. On the downside, break below 1.29 have been met with bids throughout this week, which is justified since oil prices have remained on the back foot.

The main event for the day is Yellen’s speech at Jackson Hole event. Hawkish talk could help the spot breach make or break level of 1.30, while neutral/dovish comments could finally lead to sustained losses below 1.29 handle.

USD/CAD Technical Levels

The pair was last seen trading around 1.2908 levels. A break below 1.2888 (10-DMA) could yield test of 1.2859 (Aug 23 low), under which the spot could target 1.2799 (Aug 16 low). On the higher side, resistance at 1.2923 (100-DMA) if breached would shift risk in favor of a rise to 1.30 levels. A violation there could yield 1.3144 (June 2 high).