Technical Analysis – USDCAD bears take a breather after slump below 1.3600
USDCAD hits almost 5-month low around 1.3500
Stochastic and RSI hover in the oversold regions
USDCAD saw aggressive selling interest on Friday, sending the market well below the strong 200-day simple moving average (SMA), which overlaps with the 1.3600 psychological mark. The pair recorded an almost five-month low of 1.3497, but it is currently rising somewhat, with the technical oscillators remaining in oversold areas. The stochastic posted a bearish crossover within its %K and %D lines, while the RSI is still developing beneath the downtrend line.
If sellers stay in control, initial support could come from 1.3480 ahead of the 1.3450 and 1.3420 lines, taken from the troughs of March to Apil.
Otherwise, should buyers drive above 1.3600, they could encounter initial strengthened resistance from the 20- and 50-day SMA at 1.3705. Overcoming these borders, the price may shoot for the 1.3790 barricade.
All in all, USDCAD has shifted its bullish outlook to bearish after breaking below the 200-day SMA. A rise above the 22-month peak of 1.3947 could reaffirm the positive bias.Related Assets
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