USDCAD is losing momentum after the spike towards the seven-week high of 1.2646 that it posted on Thursday. The pair declined below the 1.2600 psychological number again and it may find immediate supports at the simple moving averages (SMAs), which are hovering around 1.2460. The MACD oscillator is rising in the positive area, holding above its trigger line, while the RSI is testing the ascending line in the bullish area.
In case of more losses, the price could meet the 20- and 40-day SMAs as well as the flat 200-day SMA near 1.2460 before tumbling to the 1.2390 support level. Below these lines, the pair may visit the latest low at 1.2285 ahead of the 1.2200 round number.
In the positive scenario, a successful climb above yesterday’s top it could increase the optimism for bullish bias until the 1.2770 hurdle. Overcoming these obstacles, the bulls may have eyes for the 1.2900 handle and the eight-month peak of 1.2950.
To conclude, USDCAD is heading south in the very short-term; however, over the last month it has been in a bullish correction mode. In case of a jump above the eight-month high of 1.2950, the broader positive outlook would be endorsed.
