USDCAD is declining below the descending trend line and the simple moving averages (SMAs) after the pullback off 1.2645, however, the technical indicators are showing mixed signals. The RSI flattening in the negative territory, while the stochastic rebounded off the oversold zone, posting a bullish cross within the 20- and 40-period SMAs.
A leg lower could meet the 1.2472 – 1.2500 support zone before taking the bears even lower towards the 1.2363 level, achieved in March 18.
On the flip side, an increase above the SMAs could flirt with the 1.2600 psychological level ahead of the falling trend line and the 1.2645 resistance. Above these lines, the 1.2740 barrier could come in the spotlight as well as 1.2780-1.2800.
Summarizing, USDCAD has been in declining mode since January 28 and any advances above the falling line may shift the current view to bullish.