- USD/CAD eases following Monday’s solid rally above 1.3200.
- A daily close above 21-DMA is critical to unleashing upside potential.
- Daily RSI points south and remains in the bearish region.
USD/CAD is falling in sync with the US dollar amid the downbeat market mood, thanks to the rapid rise in the coronavirus cases and fading US stimulus hopes.
The spot stalls Monday’s rally induced by the sell-off in WTI prices and turns south on Tuesday, as the technical set up paints a bearish picture in the near-term.
Despite closing Monday above the 50-daily moving average (DMA), then at 1.3198, the price fails to find acceptance above the 21-DMA placed at 1.3209.
Therefore, the bears now look to test Monday’s low of 1.3125, below which the two-month-old rising trendline support at 1.3092 could be put at risk.
The 14-day Relative Strength Index (RSI) points south while trading below the midline at 48.37, further backing the case for the downside.
Only a daily closing above the 21-DMA could negate the near-term downside bias.
USD/CAD: Daily chart
USD/CAD: Additional levels
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