USDCAD’s recent improvements over the red Tenkan-sen line have yet to dent the broader bearish bias. The simple moving averages (SMAs) are endorsing the commanding downwards tone and the recent bearish crossover of the 100-period SMA by the 50-period one could reinforce this outlook. The Ichimoku lines are reflecting negative sentiment, despite the marginal easing in the red Tenkan-sen’s downward slope and the recent pickup in buying interest.
However, the short-term oscillators are indicating the recent upturn in the price and are suggesting fading downside momentum. The MACD, in the negative region, is rising above its red trigger line, while the climbing RSI is approaching the 50 neutral threshold. The strong positive charge in the stochastic oscillator is promoting an extension of the recent up move in the pair. Yet, these conflicting signals and buyers’ attempt to retake lost ground will be in vain should the pair fail to push above the 1.2520 level.
If buying interest persists, resistance may originate from the region of 1.2500-1.2520, where the blue Kijun-sen line also resides. Surpassing this key boundary, buyers may then target the 50-period SMA at 1.2558 ahead of the Ichimoku cloud and the 1.2572-1.2592 buffer zone – reinforced by the 100-period SMA.
Alternatively, steering the price back beneath the red Tenkan-sen line at 1.2465, the bears could then encounter downside limitations at the 1.2432-1.2442 support band. Diving from here, sellers may aim for the 1.2396 obstacle, while sinking past this could plunge the pair towards the 1.2331-1.2348 support barrier.
Summarizing, USDCAD is sustaining an overwhelming bearish structure, especially as the price persists below the SMAs.