• USD/CAD edges lower on Wednesday in the early European session.
• The formation of multiple doji candlesticks mark indecisiveness among traders.
• Momentum oscillator approaches the oversold zone, warns caution for aggressive bids.

USD/CAD remains on the backfoot in the middle of the week. After testing the low near 1.2311, the pair managed to bounce above 1.2340 amid downside risk. At the time of writing, USD/CAD is trading at 1.2343, down 0.11% for the day.

USD/CAD daily chart

On the daily chart, after testing the high of 1.2896 on September 20, the USD/CAD pair came under selling pressure. The selling pressure intensified once it broke below the 21-day Simple Moving Average (SMA) at 1.2680.

A daily close below the session’s low would open gates for the 1.2300 horizontal support level followed by the low made on June 17 at 1.2262. The receding Moving Average Convergence Divergence (MACD) would prompt the USD/CAD bears to take out the 1.2200 horizontal support level.

Alternatively, on the higher side the first target appears to be the 1.2400 horizontal resistance level and then march toward the high made on October, 14 at 1.2445. Next, the market participant would keep their eyes on the 1.2500 horizontal resistance level.

USD/CAD additional levels