USDCAD continues to fall in a descending channel. The outlook remains bearish especially after prices fell below a key level on Monday, breaking below 1.3000 and $1.2900 to reach $1.2884. A daily close below $1.2900 could see a continuation of the bearish trend that started from the multi-year peak of 1.4689 in January (the highest in more than 12 years).
RSI is below 50 in bearish territory, supporting the downside momentum. The 50-day moving average is falling sharply and approaching the 200-day moving average. A bearish cross would reinforce the bearish bias.
There is scope to target 1.2825, the low of October 2015. To the upside, 1.3000 is a key resistance level.
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