USDCAD is trading around the vicinity of 1.3440 – 1.3515, being the bullish gap from March 6. The pair plunged to a three-month low of 1.3467 on Thursday’s session, hitting the flat 200-day simple moving average (SMA).
The technical indicators are standing in oversold territories in the short-term. The MACD is still falling below its trigger and zero lines, while the RSI and the stochastic are flattening, suggesting a weak bearish momentum.
If sellers continue to have control and drive the pair below the 200-day SMA, initial support could come from the 1.3440 level. Diving further, limitations may arise from the nearby 1.3310 barrier and the 1.3200 psychological number from February 21. If the bears persist, the attention could then move towards the 1.3100 round number.
On the other hand, should buyers drive above the 1.3515 resistance, they could encounter initial strengthened resistance from the 61.8% Fibonacci retracement level of the up leg from 1.2950 to 1.4668 at 1.3610 and the 50.0% Fibonacci of 1.3808. A step above this level, buyers may meet further constrictions from the 1.3850 barrier, which stands slightly above the 20-day SMA. Overcoming these borders, the price may shoot for the 40-day SMA currently at 1.3933 ahead of the 38.2% Fibonacci of 1.4510.
Overall, USDCAD has been in a strong bearish rally over the last ten days, slipping beneath all the Fibonacci levels, recouping the bullish gap.
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