09:20, 25 January

USDCAD Daily Analysis

The USDCAD pair traded lower for the third consecutive session yesterday and closed at 1.2348, after notching a low at 1.2317. Currently,  the  daily  momentum  oscillators  are  trading  at  a  lower  level  below  their  midlines,  hinting  the  presence  of  bearish momentum in the pair. Besides, the 8H MACD and RSI are heading towards the south, along with the stochastic indicator tranquil below  its  oversold  territory,  further  confirms  the  above  outlook.  Immediate  support  is  placed  at  the  2H  lower  Bollinger  Band (currently trading at 1.2272/70), followed by the 1.2245 and 1.2214/10 levels. A breach below the latter might trigger further bearish pressure on the pair. Conversely, key resistance resides at the 1.2338/40 level, followed by the 2H  20SMA (currently trading at 1.2374/75) and the 4H 20SMA (currently placed at 1.2411/15). A break above the latter might lead to positivity in the pair.