USDCAD has been in a consolidation area over the last week with upper boundary the 1.3245 resistance and lower boundary the seven-month low of 1.3132, reached on August 19. The stochastic oscillator is flattening in the overbought zone and the RSI is ticking down in the positive region, suggesting more losses.
The 40- and the 20-period simple moving averages (SMAs) in the 4-hour chart, are acting as strong support levels for the bears at 1.3197 and 1.3186 respectively, near the lower surface of the Ichimoku cloud. Below that, the seven-month trough at 1.3132 could halt bearish actions, while even lower, the 1.3100 handle could come in focus.
Alternatively, if there is an attempt above the 1.3245 barrier, immediate resistance is coming from 1.3270. If the bulls continue to have the control, the 1.3345 and the 1.3400 strong hurdles are the next lines to watch.
Overall, USDCAD is moving sideways and the momentum is slowing down in the very short-term. Any advances above 1.3245 or any declines below 1.3132 could paint the next direction.
