FXstreet.com (San Francisco) - USD/CAD is set to break onto lower ground after selling off sharply from its intraday high of 1.0171, last at 1.0131 from 1.0150. A clear break below the 1.0125 (15 July low) area would open scope for the market to run to support at the 1.0100 figure.
“Looking at the 1H chart, the RSI did fall below 40 so it lost the preceding bullish momentum, and also fell below 30 to establish some near-term bearish momentum,” explains Fan Yang, CMT, Chief Technical Strategist at FXTimes. “For now, the RSI is holding below 60, so this bearish bias is maintained in the near-term. A breakout to the downside opens up 1.01, and then a key pivot in the 1.0050-1.0060 area, 1.0050 should really be the limit of the bearish outlook in the short-term.”
“Looking at the 1H chart, the RSI did fall below 40 so it lost the preceding bullish momentum, and also fell below 30 to establish some near-term bearish momentum,” explains Fan Yang, CMT, Chief Technical Strategist at FXTimes. “For now, the RSI is holding below 60, so this bearish bias is maintained in the near-term. A breakout to the downside opens up 1.01, and then a key pivot in the 1.0050-1.0060 area, 1.0050 should really be the limit of the bearish outlook in the short-term.”
