USDCAD drops to the lowest level since September 10 during the six-day downtrend on early Tuesday. The Loonie pair’s failure to stay past the key resistances above 1.2800 joins a downward sloping RSI line to direct USDCAD towards a 100-day EMA level near 1.2540. However, the quote’s further weakness will be challenged by the 50% Fibonacci retracement level near 1.2475 and the late July lows close to 1.2420.
Meanwhile, recovery moves may find multiple upside hurdles around 1.2700, a break of which will enable USDCAD buyers to re-confront the two crucial horizontal resistances near 1.2810 and 1.2830. While the pair bulls are likely to step back from 1.2830, their dominance past the same will not hesitate to challenge the yearly peak surrounding 1.2950. Overall, USDCAD remains bearish but the important EMA support questions the sellers.
Meanwhile, recovery moves may find multiple upside hurdles around 1.2700, a break of which will enable USDCAD buyers to re-confront the two crucial horizontal resistances near 1.2810 and 1.2830. While the pair bulls are likely to step back from 1.2830, their dominance past the same will not hesitate to challenge the yearly peak surrounding 1.2950. Overall, USDCAD remains bearish but the important EMA support questions the sellers.