USD/CAD Technical Analysis: Off 4.5-month low, the pair is respecting oversold 1H RSI

The USD/CAD dropped to 1.2813 in Asia - the lowest level since May 23 - as the Canadian dollar picked up a strong bid on NAFT deal.
As of writing, the pair is down more than 200 pips from Friday's high of 1.3048 and is looking oversold as per the relative strength index (RSI) on the hourly chart.
Notably, the hourly RSI has also breached the descending trendline. As a result, a minor bounce could be in the offing, possibly to 1.2884 (resistance of Sept. 20 low on the hourly chart).

Omkar Godbole FXStreet Contributor

Hourly chart

Spot Rate: 1.2831

Daily High: 1.2888

Daily Low: 1.2812

Trend: Oversold

Resistance

R1: 1.2869 (200-day moving average)

R2: 1.2884 (Sept. 20 low)

R3: 1.2941 (10-day moving average)

Support

S1: 1.2818 (May 31 low)

S2: 1.2729 (May 11 low)

S3: 1.27 (psychological support)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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