USD/CAD Price Analysis: Prints bullish spinning top near weekly support line above 1.3400

• USD/CAD maintains 1.3405-20 range following a pullback from 1.3400.
• Bullish candlestick formation near short-term support joins oversold RSI to increase the odds of recovery.
• Buyers will wait for a clear break above 1.3450, sellers will target June low during further weakness.

USD/CAD trades near 1.3416 amid Thursday’s Asian session. The pair refreshed the lowest since June 11 on Wednesday but refrained from further downside then after. The resulted moves portray bullish spinning top candlestick on the four-hour chart.

Also increasing the odds of a pullback are oversold RSI conditions and a downward sloping trend line from July 16.

However, bulls may remain cautious and better wait to confirm the bullish chart pattern, namely a falling wedge, with an upside clearance of 1.3450. Following that, July 09 low near 1.3490 and 200-bar SMA level of 1.3562 will be on their radars.

On the downside, the pair’s break below 1.3400 will eye for June month’s bottom close to 1.3315 ahead of targeting February 2020 low near 1.3200.

USD/CAD four-hour chart

Trend: Pullback expected