- USD/CAD edged lower for the fourth consecutive session on Thursday.
- The technical set-up remains tilted firmly in favour of bearish traders.
- The stage seems set for a slide towards descending channel support.
The USD/CAD pair remained depressed for the fourth straight day and dropped to near six-month lows, around the 1.3210 region during the mid-European session on Thursday.
The recent downfall since late June has been along a downward sloping channel, which points to a well-established bearish trend and supports prospects for further weakness.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and are still far from being in the oversold conditions, reinforcing the negative outlook.
Hence, some follow-through weakness below the 1.3200 mark, towards challenging the trend-channel support near the 1.3160-55 region, now looks a distinct possibility.
On the flip side, any attempted recovery might now confront fresh supply near the 1.3255-60 horizontal zone, which if cleared might trigger a near-term short-covering bounce. The pair might then aim to reclaim the 1.3300 mark and aim towards testing the descending trend-channel resistance, around the 1.3360-70 region.
USD/CAD 4-hourly chart
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Technical levels to watch
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