USDCAD has turned bearish in the medium-term, retracing more than half of the uptrend from 1.3222 (April 13 low) to 1.3792 (May 5 high).
The break below the key 1.3500 level and below the 50-day moving average this week accelerated a decline to the 1.3400 area. A top is now in place at the May 5 high of 1.3792 as the market reversed lower after reaching overbought levels when RSI rose above 70 in early May.
RSI has now dipped below 50 into bearish territory and MACD is trending down, reflecting a bearish momentum in the market.
There is risk for USDCAD extending lower to target support at 1.3300. Below this, there is scope to re-test the April low of 1.3222 and then 1.3000.
A move back above what is now resistance at 1.3500 would bring back a bullish bias but a rise above 1.3700 is needed to resume the recent uptrend.
Interested in USDCAD technicals? Check out the key levels
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