USDCAD has dropped below the 200-day moving average for the first time since September 2014, as it continues its retreat from the 13-year high of 1.4689 high it set back in January. Prices recovered above the 1.30 handle today but they remain sharply below the Ichimoku cloud, which is underlining the negative outlook.
RSI remains bearish slightly above oversold levels and the MACD does not yet appear to have bottomed out below 0, suggesting the current downward bias has yet to run its course. The nearest support is the October 2015 low of 1.2831. A break below this level would only strengthen the current bearish bias.
On the upside, resistance would come at around 1.3130, which has acted as a previous resistance level. A close above this level is needed for further momentum to re-challenge the 200-day moving average.
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