USDCAD is pointing upwards after the strong selling interest from the two-month high around 1.3418. The pair surpassed the 38.2% Fibonacci retracement level of the upward wave from 1.2993 to 1.3418 at 1.3255. The momentum indicators are also endorsing a bullish bias in the very short-term. The stochastic oscillator posted a bullish crossover within its %K and %D lines in the oversold zone, while the RSI is heading north in the negative territory.
Immediate resistance is coming from the 20-period simple moving average (SMA) at 1.3285 before heading towards the 23.6% Fibonacci of 1.3317. Marginally above this line, the 1.3330-1.3350 zone is coming next, which encapsulates the 40-period SMA.
Alternatively, a drop beneath the two-week low of 1.3240 could open the way for the 50.0% Fibonacci of 1.3205. More losses could send the pair until the 61.8% Fibonacci of 1.3155, creating a strong bearish correction, while a sink below this line could shift the outlook from bullish to bearish.
To sum up, USDCAD has been in a positive tendency over the last months, despite the minor decline below the ascending trend line over the last couple of sessions.
