USDCAD remains neutral on the daily chart, pivoting around the key 1.2500 level since the start of January. The pair has been unable to sustain gains after a break of this level last week and consequently, the market has been stuck in a multi-week range roughly between 1.2350 and 1.2600.
Technical indicators that were strongly bearish are now turning neutral, suggesting that downside momentum is fading at least in the near term. The 50, 100 and 200-day moving averages are moving sideways, indicating a lack of a clear trend.
The 100-day MA is providing immediate resistance just under 1.2590, while near-term support is expected at 1.2355.
In the bigger picture, USDCAD remains under pressure as it failed to make a sustained move above 1.2900 and declined from this area in December after finding strong resistance at the 200-day MA. A rise above the key 1.3000 level is required in order to bring about a more bullish outlook.
