USD/CAD Price Analysis: Picks up bids above 1.2100 inside immediate falling wedge

• USD/CAD consolidates Friday’s losses, recently easing from intraday top.
• Bullish chart pattern needs validation from 200-HMA, one-week-old horizontal line.
• Upbeat Momentum backs the buyers, sellers have a bumpy road ahead.

USD/CAD battles short-term key resistance while taking rounds to 1.2120, up 0.13% intraday, during early Monday.

The Loonie pair’s rebound from one-week-old horizontal support zone, portrayed on Friday, takes clues from an upbeat Momentum indicator to back the bulls.

However, a clear break above 1.2125 isn’t enough to confirm the pair’s rally as 200-HMA and multiple resistances from May 06, respectively near 1.2160 and 1.2200, will test the USD/CAD buyers afterward.

Meanwhile, pullback moves could retest the 1.2100 threshold before Friday’s low near 1.2080 challenges the quotes’ further weakness.

Also acting as the key downside filter is the support line of the falling wedge formation, formed since last Thursday, as well as the recently flashed multi-month low, near 1.2065 and 1.2045 in that order.

To sum up, USD/CAD portrays a corrective pullback that needs validation.

USD/CAD hourly chart

Trend: Further recovery expected