After finding support at the 100-hour SMA around 0.9995, USD/CAD climbed to retest the 1.0030/35 resistance area, which has capped the pair this week. At time of writing, USD/CAD is trading at the 1.0025 zone, 0.1% above its opening price.
"With resistance firmly established at 1.0030 in USDCAD, it seems that price action is portending towards a near term decline", says Richard C. Lee, analyst at FXstreet.com. "The figure has prompted the formation of a triple top technical pattern, indicative of a bearish drop to initial support at 0.9991. The level acts as the base for short term consolidation. As such, a subsequent downside violation would open scope for a drop to 0.9956 50% fib support from the 0.9879-1.0035 bullish wave".