USDCAD is decelerating within the descending channel, having retreated below the 1.2500 level and its short-term simple moving averages (SMAs) on the four-hour chart. The RSI is ticking lower in the negative region, while the stochastic is moving south towards the oversold zone.
Immediate support could come from the latest low of 1.2472 before the focus turns to the 1.2363 barrier, taken from the troughs on March 18.
On the flip side, an ascending move above the 20- and 40-period SMAs could face initial resistance around 1.2540. Slightly higher, the 200-period SMA at 1.2555 may halt bullish movements ahead of the 1.2635-1.2645 restrictive area.
To sum up, USDCAD has been developing within a downward-sloping channel since April 7. A negative violation of this formation could strengthen the bearish bias in the near term.
