USDCAD broke the short-term sideways range to the downside in the preceding sessions, holding beneath the 1.3400 level.
According to the RSI, the market could maintain the latest downside momentum as the indicator is negatively sloped below its neutral threshold of 50, though the fast Stochastics suggest that the market is located in oversold territory, and therefore, some weakness is possible. The MACD is still extending the negative structure beneath its trigger and zero lines.
On the upside, the price could attempt to overcome the 1.3470 resistance and retest the 50- and then the 20-day simple moving averages (SMAs) at 1.3490 and 1.3530 respectively. If these lines successfully break the door could open for the 1.3700 psychological level. Should traders continue to buy the pair above the upper boundary of the channel, resistance could then run towards the 1.3850 area.
A downside move could find immediate support at the 1.3310 barrier, while slightly lower the 1.3225 level could also come into view. If the latter fails to halt bearish movements, the next target could be the 200-day SMA at 1.3165.
Turning to the medium-term trading, the outlook has been lacking direction over the last four months and only a dive below the 200-day SMA may switch the bias to bearish or a jump above the 29-month high of 1.3980 to bullish.
