USDCAD appears to be developing a neutral-to-bearish pattern as its recent progress from 1.3080 seems is being supressed by the 100-day simple moving average (SMA). The stifled Ichimoku lines and the dwindling downward pace of the 50- and 100-day SMAs are aiding this view.
The short-term oscillators currently reflect improving positive momentum. The MACD is strengthening above its red trigger and zero line, while the RSI is making attempts to sustain a positive trajectory towards the 70 level. However, the stochastic lines are presently flirting with the 80 mark, and have yet to confirm any assisting signals for forthcoming price action.
Sinking into the Ichimoku cloud, a support region may commence from the inside swing high of 1.3259 until the cloud’s lower band, which also includes the unclear Ichimoku lines. Pushing underneath the cloud may then test the 50-day SMA at 1.3208, before encountering the section of lows from 1.3109 until 1.3080. Slipping past this border, the bears may challenge the critical troughs of 1.2993 and 1.2950 respectively, which if broken, may dive the pair towards the 1.2884 barrier from October 2018.
Otherwise, a step over the immediately curbing 100-day SMA at 1.3331 may thrust the price towards the 1.3420 high. Overrunning this, the resistance section of 1.3458 – 1.3504 may provide reinforced upside pressure ahead of the 200-day SMA at 1.3558. Should the 200-day SMA fail to halt further gains, the pair may then target the peaks of 1.3600 and 1.3645 respectively.
Summarizing, the neutral-to-bearish structure remains sturdy below the 100-day SMA at 1.3331 and the 1.3420 level. A break above or below the confines of 1.3420 or 1.2993 may set the next price course.
