USDCAD posted losses for the second consecutive period, pulling back from the 200-period simple moving average (SMA) around the 1.2835 resistance and is now hovering in the Ichimoku cloud. The RSI in the 4-hour chart is falling further in the positive area, while the MACD is losing some momentum above its trigger and zero lines. However, the red Tenkan-sen is still moving above the blue Kijun-sen line while the 20- and 40-period SMAs created a bullish crossover in the preceding sessions, which is still acting as support.
However, should the price close comfortably below the bullish cross of the SMAs, traders could initiate more shorts, pushing the market down to the 1.2657 barrier. More losses could take the price even lower to the 33-month trough of 1.2630.
In the positive scenario the market could retest the 200-period SMA near 1.2825 and the 1.2835 resistance. If this proves easy to overcome this time, the increase may next pause somewhere between the 1.2933-1.2955 zone. In brief, USDCAD is in bearish mode in the very short-term timeframe but any advances above the 200-period SMA may change this outlook.
