USDCAD was stubbornly fighting near the 1.2875 resistance, which is the upper boundary of the consolidation area of 1.2450-1.2875, but failed to jump above it. The area has been holding since December 2021 and only a violation of 1.2875 or below 1.2450 may change the neutral view.
The technical picture, however, suggests a bearish bias at the moment as the MACD remains positively charged above its red signal line but with weak momentum, while the RSI is currently pushing efforts for a downside reversal, as it is pointing down in the positive region. Despite the negative indications, the 20-day simple moving average (SMA) is ready to cross the 200-day SMA to the upside, suggesting more gains.
Should the upper boundary at 1.2875 crack, the price could initially test the 14-month high of 1.2960 before heading towards the 1.3175 resistance, taken from the peak in November 2020.
In the negative scenario where the pair moves lower the 1.2675 level could be the next target. Moving lower, the bears would need to drive below the SMAs at 1.2630 to access the lower boundary at 1.2450.
As regards the medium-term outlook, USDCAD is maintaining a neutral trajectory. Despite its resilience near 1.2875, the price has yet to show any clear bullish signals, climbing above the latter level to shift the outlook back to positive.
