USD/CAD Price Analysis: Technical set up remains in favor of bears

USD/CAD looks to extend Monday’s decline.
Bearish bias remains intact while below 21-DMA.
Daily RSI points south in the bearish territory.

Dhwani Mehta FXStreet

USD/CAD has recovered losses but remains well below the 1.3100 level in the European session, with the risks remaining to the downside, as technical set up favors the bears in the near-term.

Looking at the daily chart, the spot trades below all major daily moving averages (DMA), with the 14-day Relative Strength Index (RSI) pointing south below the midline, suggesting that there is more room to the downside.

Therefore, the price could drop to test the 1.3000 level should the November 12 low of 1.3056 give way.

Further south, the two-month-old falling trendline support at 1.2916 could be put to test if the sellers extend their control.

Alternatively, daily closing above the 21-DMA at 1.3146 is needed to reviving last week’s upbeat momentum.

The next relevant resistance is seen at the horizontal 50-DMA of 1.3201, which could likely challenge the bulls’ commitments.

USD/CAD: Daily chart

USD/CAD: Additional levels

USD/CAD

Overview
Today last price	1.3078
Today Daily Change	-0.0015
Today Daily Change %	-0.11
Today daily open	1.3094

Trends
Daily SMA20	1.315
Daily SMA50	1.3205
Daily SMA100	1.3276
Daily SMA200	1.3537

Levels
Previous Daily High	1.3142
Previous Daily Low	1.3066
Previous Weekly High	1.3173
Previous Weekly Low	1.2928
Previous Monthly High	1.339
Previous Monthly Low	1.3081
Daily Fibonacci 38.2%	1.3095
Daily Fibonacci 61.8%	1.3113
Daily Pivot Point S1	1.3059
Daily Pivot Point S2	1.3025
Daily Pivot Point S3	1.2983
Daily Pivot Point R1	1.3135
Daily Pivot Point R2	1.3176
Daily Pivot Point R3	1.3211

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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