USDCAD is showing some signs of weakness after three straight green days and a spike near the 20-month peak of 1.3225.
In trend indicators, the 20- and 50-day simple moving averages (SMAs) posted a bullish crossover, confirming the bullish bias in the short- and long-term timeframe. The technical oscillators are presenting some contradicting signs. The MACD is holding well above its trigger and zero lines; however, the stochastic created a bearish crossover within its %K and %D lines in the overbought region, while the RSI is ticking lower in the positive area, suggesting a bearish correction.
The 1.3175 barrier and the 20-month high of 1.3225 could challenge any bullish attempts towards a fresh high until 1.3385, registered in October 2020. Hence any breakout at this point may gather extra attention, with the price likely speeding up to 1.3420 – a key barrier during the September 2020 period.
Alternatively, an extension below 1.3060 will strengthen a negative movement, likely activating a fresh bearish wave towards the short-term SMAs at 1.2915 and the 1.2900 psychological mark. Failure to hold above that floor could cause another negative extension towards the 200-day SMA at 1.2775.
In brief, USDCAD is still in positive territory and only a drop underneath the 200-day SMA and the long-term ascending trend line may switch the picture to bearish.
