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USDCAD tumbles after the spike to 1.3645 today
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Momentum oscillators are heading down
USDCAD has been in a strong selling interest today, despite the bullish start and the climb to 1.3645. The price tumbled beneath the 200-day simple moving average (SMA), flirting with the 20-day SMA at 1.3540.
Technically, the MACD oscillator is holding above its trigger line, but the momentum is currently weakening. The RSI indicator is diving below the neutral threshold of 50, confirming the market’s declining price action.
If the market continues to sell off, the next support region could be between 1.3420 and 1.3440. Below that, January’s bottom at 1.3360 may pause bearish movements.
Alternatively, to confirm a bullish correction, the price needs to overcome the 1.3620 resistance as well as the 50-day SMA, which lies around 1.3655. Above these lines, the bulls could rally until the 1.3790 resistance and the previous peak at 1.3947.
To sum up, USDCAD has been in a neutral-to-bearish phase over the last month, with the broader outlook looking more neutral.
