- USD/CAD was seen consolidating in a range above weekly lows, just below mid-1.3500s.
- This week’s break below a three-week-old ascending trend-line favours bearish traders.
- A subsequent fall towards the 200-DMA, near 1.3500 mark, looks a distinct possibility.
The USD/CAD pair extended its sideways consolidative price action through the early North American session and remained confined in a narrow trading band, just above mid-1.3500s.
This comes on the back of this week’s slide below a short-term ascending trend-line, extending from lows set on June 10 and June 23. This coupled with the overnight rejection near the mentioned trend-line breakpoint supports prospects for further weakness.
Bearish technical indicators on hourly/daily charts add credence to the bearish break and reinforce the negative outlook. Hence, a subsequent fall towards the very important 200-day SMA, around the key 1.3500 psychological mark, remains a distinct possibility.
Some follow-through selling will be seen as a fresh trigger for bearish traders. The pair might then accelerate the slide towards the 1.3410-1.3400 intermediate support before eventually dropping to three-month lows, around the 1.3315 region set on June 10.
On the flip side, any attempted recovery move might continue to confront a stiff resistance near the 1.3600-1.3620 region. A convincing breakthrough might trigger a short-covering move and assist the pair to aim back towards reclaiming the 1.3700 round-figure mark.
USD/CAD 1-hourly chart
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Technical levels to watch
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