The USD/CAD weakened Tuesday on the back of comments regarding excessive currency appreciation. Bullish 4-hourly MACD divergence invoked a corrective rebound that has since stalled near last week's swing low at 1.0740. It appears that this pair may be forming a falling wedge, typically a reversal pattern. A relatively low risk entry point would be 1.0583, where wedge support and a key fibonacci retracement coincide. Meanwhile, the bearish structure remains intact while the Loonie trades below the 10-day MA (now at 1.0829) and a clean loss of 1.0583 could trigger a capitulation-type move towards the 1.04 region.
