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USDCAD decreases close to critical levels
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Stochastics look oversold but RSI still falls
USDCAD is having a strong battle with the 1.3600 psychological level and the 200-day simple moving average (SMA) after the significant pullback off the 22-month high of 1.3947. The stochastic looks oversold below the 20 level; however, the RSI is keeping its downside momentum near the 30 level.
Any successful closing sessions beneath this obstacle could send the market towards the next support levels, such as 1.3480 and 1.3450, taken from the lows in April and March.
However, if the 1.3600 tricky area acts as a turning point, then the price may return to the upside, meeting the 50-day SMA at 1.3715 and the 20-day SMA at 1.3760. Even higher, the inside swing low of 1.3790 from July 31 could be another key zone.
All in all, USDCAD has lost 2.5% over the last couple of weeks, and a break to the downside or an advance above the 1.3600 round number could clear up the market picture.
