USDCAD plummeted towards the 1.3140 support level today with strong force, taking the momentum indicators lower. The MACD fell beneath its zero line and is distancing from its trigger line, while the RSI is approaching the oversold territory. Moreover, the red Tenkan-sen line dropped beneath the blue Kijun-sen line, shifting the bias to overwhelmingly negative.
If the pair weakens further, the 1.3108 could provide the next support at the 1.3108 level. Breaching this trough, the next target is the 1.3080 barrier, taken from the low on October 21 before meeting 1.2993, registered on September 1.
In the very-short term, the picture is decidedly bearish, with price action remaining well below the short-term moving averages (SMAs). However, in the medium-term outlook, the pair has been developing sideways over the last couple of months.
