- USDCAD oscillates within a sideways range
- Momentum starts shifting negative
- A break below 1.3590 could turn the picture negative
- A move above 1.3750 could invite more bulls
USDCAD came under selling interest this week, after hitting resistance near the 1.3750 zone, the upper bound of a sideways range, within which the pair has been mostly oscillating since April 10. The price is now approaching the lower boundary, which currently coincides with the 200-day exponential moving average (EMA).
Both the RSI and the MACD corroborate the latest bearish momentum and suggest that the declines may continue for a while longer. The RSI fell below 50 and is still pointing down, while the MACD is lying below both its trigger and zero lines.
If the bears are strong enough to overcome the lower bound of the range at around 1.3590, the slide may intensify towards the 1.3475 zone, which is marked as support by the low of April 4. The next area that could halt the slide may be at around 1.3425.
On the upside, a recovery above the upper end of the range at 1.3750 could meet immediate resistance at 1.3780. If the bulls do not stop there, then they may extend their march towards the peak of April 16 at around 1.3845.
To sum up, USDCAD is trading within a sideways range, with the price headed towards the lower bound of 1.3590. A break lower could turn the picture bearish.
