USD/CAD Technical Analysis: Retreats from 200-hour SMA/ascending trend channel confluence hurdle

   •  The pair has been steadily climbing alongside a short-term ascending trend-channel formation on the 1-hourly chart since the early North-American session on Friday.

   •  The positive momentum stalled near the trend-channel resistance, also coinciding with 200-hour SMA amid a fresh wave of broad-based USD selling pressure.

   •  Considering the pair's recent decline, the ascending channel seems to constitute towards a bearish flag chart pattern formation on the mentioned chart.

   •  Moreover, technical indicators on the daily chart are still far from oversold but are yet to recover from the negative territory and add credence to the bearish outlook. 

   •  Hence, the ongoing recovery momentum might still be seen as corrective in nature and runs the risk of facing fresh supply on every attempted up-move.
 

USD/CAD 1-hourly chart

Spot Rate: 1.2954
Daily High: 1.2973
Daily Low: 1.2945
Trend: Bullish

Resistance
R1: 1.2973 (current day swing high)
R2: 1.3000 (psychological mark)
R3: 1.3026 (R3 daily pivot-point)

Support
S1: 1.2924 (S1 daily pivot-point)
S2: 1.2900 (round figure mark)
S3: 1.2863 (200-day SMA)