USDCAD has been posting more losses as it completed a fresh seven-month low of 1.3085 earlier today, remaining in a descending channel over the last five months.
The momentum indicators are currently encouraging the sell-off as the MACD oscillator is developing beneath its trigger and zero lines, while the RSI is trying to meet the oversold territory. Both the Ichimocku indicators, the red Tenkan-sen and the blue Kijun-sen lines, and the 20- and 40-day simple moving averages (SMAs) are heading south
A closing price below today’s low could boost the selling interest and confirm additional losses towards the 21-month trough of 1.2950. Lower still, the 1.2780 support, taken from the low on September 2018 could also react as strong support.
In the event of a pullback above 1.3100, the bulls may push harder to touch the 1.3250 resistance, which stands near the 20-day SMA, before heading to 40-day SMA currently at 1.3358. Above that, the 1.3460 resistance and the 200-day SMA at 1.3535 could attract traders’ attention.
Meanwhile in the medium-term picture, the outlook remains strongly bearish following this month’s fall, with traders awaiting a rally above the 1.3850 level to eliminate fears of a down-trending market.
