USDCAD has retreated from its January excessive amid strengthening unfavourable momentum, and is at present discovered close to its decrease Bollinger Band indicating that a direct upside motion shouldn’t be dominated out. Furthermore, the pair’s 50-period easy transferring common (SMA) has lately crossed beneath its 200-period SMA, rising fears of a sustained bearish outlook.
Brief-term momentum indicators are supporting a unfavourable bias because the RSI is situated beneath its 50 impartial mark. Additionally, the MACD is discovered beneath zero and its crimson sign line, which may point out that the unfavourable bias is perhaps gaining extra traction.
Ought to the bears stay in cost, preliminary help is perhaps discovered on the 1.2544 hurdle. A decisive transfer beneath this level may enhance promoting pressures additional, opening the door in the direction of the mid-November low at 1.2492. A break beneath the latter may shift sellers consideration in the direction of the early-November excessive at 1.2478.
On the flip aspect, if the value crosses above the 1.2606 degree, resistance may then be discovered on the 1.2620 hurdle. Crossing above the latter may ship the value in the direction of its 50-period SMA at present at 1.2689. A break above that time may flip the fortunes round for the pair, paving the best way in the direction of the 1.2713 impediment, earlier than the bulls eye the 1.2763 barrier.
In short, the general outlook for the pair is bearish. For sentiment to vary, sellers would wish to interrupt above the 50-period SMA.