- USDCAD is in bearish correction mode
- MACD and RSI suggest weak momentum
USDCAD is heading south erasing the rally towards the 1.3845 peak, slipping beneath the 20-day simple moving average (SMA). However, the broader outlook remains positive as the price is posting higher highs and higher lows above the 200-day SMA.
Technically, the MACD oscillator is holding beneath its trigger line in the positive area, while the RSI is moving horizontally near the neutral threshold of 50.
If the market continues to dive further, immediate support could come from the 1.3610-1.3630 restrictive region before plunging to the 50-day SMA currently at 1.3585. Even lower, the 200-day SMA at 1.3550 may act as a turning point for traders.
Alternatively, an earlier rebound around the 1.3630 support may send the pair higher towards the 1.3730 resistance. If the bullish efforts are successful, the price may advance towards the previous top of 1.3845 with the 1.3900 round number being the next destination.
In brief, USDCAD has been in a downside correction over the last ten days and any declines below the 200-day SMA may switch the longer-term picture to neutral.
. However, the broader outlook remains positive as the price is posting higher highs and higher lows above the 200-day SMA. ){kind=link}