GENERAL OVERVIEW: The daily outlook of the USDCAD pair is showing very narrow range where two parllel horizontal red lines are there which is showing the limited effort of bulls and bears on either side. The downfall is limited to 1.2440 level which is a key support level where as 1.2570 is upside limit for bulls where 200 SMA providing us bearish signal itself. The odds are favoring the bears and the way bears re leading in the game we may see further selling momentum.
REASON& ANALYSIS: From technical perspective we can see that a horizontal pattern on the 4 hourly chart and pair is trading below 1.2440 all the major and minor EMA line on the 4 hourly chart which providing is bearish signal. Presently pair is trading below all the major and minor SMA line which is providing strength to the bears the 1.2440 level seems as a key support level followed by 1.2300 level where as 1.2530 level followed by 1.2580.
The RSI is below the 50 levels which is favoring the bears. A bearish crossover on MACD indicator is showing the weakness in the pair.
OUR RECOMMENDATION: Based on the 4 hourly and studies. we can suggest to trade go for sell below 1.2440 for the downside target is 1.2350 and 1.2300 level with tight stop loss above 1.2570 level on a daily closing basis.
