USDCAD extended losses on Monday, falling for a fourth day in a row. Prices have now dipped into the daily Ichimoku cloud and have fallen below the tenkan-sen and kijun-sen lines. The RSI has fallen into bearish territory below 50. These factors increase the risk of a trend reversal. Looking at the MACD, there is a bearish divergence, as the oscillator was declining from August while prices were rising.
Immediate support comes in at the key 1.3100 level and a break below this will bring a deeper fall to the September 18 low of 1.3011. To the upside if prices manage to break back above the kijun-sen resistance at 1.3236 then there is scope to target the 11-year high of 1.3456 that was hit on September 29.
In the big picture, the uptrend from 1.1919 is still intact unless there is a fall below 1.3000.
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