- The USD/CAD pair extended its recent sharp pullback from multi-month tops – levels beyond mid-1.3500s, and opened with a weekly bearish gap below an ascending trend-line support.
- The mentioned trend-line extended from Oct. 2018 through February-March swing lows and coincided with the very important 200-day SMA, confirming a near-term bearish breakdown.
The fact that the pair already seems to have found acceptance below the said confluence, coupled with bearish oscillators on the daily chart support prospects for a further near-term depreciating move. However, highly oversold conditions on the 4-hourly charts seemed to be the only factor holding investors from placing any fresh bearish bets.
Hence, it would be prudent to wait for a near-term consolidation or a modest bounce towards the 1.3280-1.3300 region, which might be seen as an opportunity to initiate some fresh bearish positions for an eventual break below the 1.3200 round figure mark. The downward momentum could further get extended towards testing the 1.3100 handle in the near-term.
USD/CAD daily chart
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