USD/CAD Technical Analysis: Set up points to extension of the near-term downfall

   •  The pair has been oscillating in narrowing trading range, forming a descending triangle on the 1-hourly chart, and remained below an important horizontal support break-point near the 1.3050-55 region.

   •  Meanwhile, technical indicators on the mentioned chart are holding in negative territory and further add credence to the bearish formation, indicating an extension of the near-term downfall.

   •  However, a sustained move beyond the 1.3050 support turned resistance might negate the negative outlook and trigger a near-term short-covering bounce back towards the 1.3100 round figure mark.
 

USD/CAD 1-hourly chart

Spot Rate: 1.3028
Daily High: 1.3045
Daily Low: 1.3016 
Trend: Bearish

Resistance
R1: 1.3045 (current day swing high)
R2: 1.3085 (R2 daily pivot-point)
R3: 1.3097 (200-period SMA H1)

Support
S1: 1.3012 (S1 daily pivot-point)
S2: 1.2984 (100-day SMA)
S3: 1.2962 (monthly low set on Aug. 7)