USDCAD extends decline; short term bearish bias remains

XM Investment Research Team XM

USD/CAD extended its decline on Monday to touch a low of 1.3110, the lowest since October 20. The short-term bearish bias is still in place and this is highlighted by the falling RSI and MACD.

Prices are heading towards the 200-day moving average which would likely act as support and restrict a further decline. This support level lies at 1.3074 and coincides with the 61.8% Fibonacci retracement level of the rise from 1.2762 to 1.3587. Below this, the key 1.3000 level will also act as support.

Given that the RSI has reached oversold levels at 30, there could be some consolidation or a bounce in prices in the near term. To the upside, resistance lies at 1.3172 and 1.3270, which are the 50% and 38.2% Fibonacci respectively. Further resistance will likely come at the 50-day moving average at 1.3338.

Overall, the near-term bias remains to the downside.

Interested in USDCAD technicals? Check out the key levels

1. R3 1.3214
2. R2 1.3189
3. R1 1.3162
PP 1.3137
1. S1 1.3110
2. S2 1.3085
3. S3 1.3058

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XM Investment Research Team

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