Technical signals show a potential resumption in the long term downtrend of the USD/CAD.
The recent uptrend in the USD/CAD looks to have been capped at a series of technical levels. On June 16th the pair reached as high as 0.9875, a level that coincides with the 200-day moving average and the trend line falling from the mid-October high.
The 14-day RSI displays a series of lower highs over the course of the recent uptrend. This price divergence signals weakening upside momentum and strengthens the case for a resumption of the downtrend.
Support is found at the rising support line from the May 20th low which comes in today at 0.9680. A break here would test the 0.9510 support followed by the low at 0.9450. Any additional moves higher will run into resistance at the trend line as well as the June 16th high and the mid-March high of 0.9975.
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