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  • After repeated failures near the 1.3340-45 region, the USD/CAD pair witnessed some follow-through selling for the third consecutive session on Tuesday.
  • The downfall finally seems to have confirmed a breakthrough a near two-week-old trading range and sets the stage for a further near-term depreciating move.

Meanwhile, technical indicators on hourly charts maintained their bearish bias and have just started drifting into the negative territory on the daily chart, further reinforcing the near-term bearish outlook for the major.
A follow-through selling below the 1.3225-20 horizontal support will reaffirm the negative bias and turn the pair vulnerable to test sub-1.3200 level before eventually dropping to its next major support near the 1.3150-45 region.
On the flip side, the near-term trading range support breakpoint – around mid-1.3200s – now seems to act as immediate resistance and any subsequent recovery might now remain capped ahead of the 1.3300 handle.

USD/CAD 4-hourly chart