09:09, 28 December
USDCAD Daily Analysis
The USDCAD pair has been trading in a bearish trending channel since past several sessions and posted modest losses yesterday to end at 1.2655, after notching a low at 1.2628. At present, the daily MACD and RSI indicators are pointing south, coupled with the stochastic indicator trading in its oversold region, reflects the presence of bearish momentum in the pair. Moreover, the 8H momentum oscillators are trading at a lower level below their midlines, further confirming the above outlook. Crucial support is placed at the 1.2578/75 level, followed by the 1.2545 and 1.2500 levels. A move back below the latter might lead to increased selling pressure on the pair. However, a lower Bollinger Band crossover on the 4H chart, suggests a possible recovery in the pair. Important resistance is aligned at the 2H 20SMA (currently trading at 1.2658/60), followed by the 2H 50SMA (currently placed at 1.2698/2700) and 1.2742/45 level.