Daily Technical Strategist On USDCAD

USDCAD: Vulnerable, Retains Bearish Tone

USDCAD: With the pair maintaining its downside pressure, further decline is likely. This leaves the pair targeting further downside towards the 1.0900 level, its psycho level where a violation will aim at the 1.0842 level, its previous week low. A follow-through lower if seen will open the door for a run at the 1.0736 level, its Dec 20 2013 high. A reversal of roles as support is likely to occur here and turn the pair higher from this level. However, if this fails to happen expect more weakness towards the 1.0650 level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, resistance comes in at the 1.1000 level where a violation will set the stage for a run at the 1.1089 level. A breach will pave the way for a push towards the 1.1172 level, its big psycho level. It may face bear threats at this level but if broken, further upside could occur towards the 1.1200 level. All in all, USDCAD continues to face further bearishness on correction.

USD/CAD since 16.09.2012 was in strong and consistent Uptrend that buyers were successful in achieving the highest price level of 1.12242.The price has stopped from more ascend by reaching to the resistance edge of Up channel and a top price was created on the resistance line by the buyers retreat.Right now in daily and H4 time frames, the price is under 5-day moving average that shows the descending trend and warns about more descending.

according to the recent descend the Monthly candle in previous Month was appeared as Harami candlestick pattern that shows failure of buyers in reaching to the higher prices and formation of a bottom price in this range (closing of bearish candle).RSI indicator is in saturation buy area and confirms the current top price, also wars about formation of a top price.Generally until the mentioned top price on the resistance channel edge is preserved, the price has the potential for reformation and descending in this currency pair.