USD/CAD Technical Analysis: Eyes confluence 4H 100-EMA and rising trendline

• The USD/CAD is on the defensive at 1.3175, having breached the 4-hour 50-candle exponential moving average (EMA) earlier today.
• The pullback from 1.3264 to 1.3175 validates the bearish divergence of the RSI seen on the 4-hour chart. Notably, the RSI has not dipped below 50.00.
• On the daily chart, both 5-, 10-period EMAs are beginning to roll over in favor of the bears.
• As a result, the spot looks set to test the support at 1.3147 - confluence of the ascending (bullish) 4H 100-period EMA and the trendline connecting the Oct. 1 and Oct. 24 lows. A deeper drop could be in the offing if the spot finds acceptance below that key support.

4-hour Chart

Trend: Bearish