USDCAD Approaches The Lower Bollinger Band Near 1.25

Technical analysis of Forex market

USDCAD is falling after the pullback off the 1.2770 resistance level last week. The price is approaching the lower Bollinger band, while the 20-day simple moving average (SMA) is ready to cross the 40-day SMA to the downside. The MACD is stretching its negative momentum below its trigger and zero lines, while the RSI is holding in the negative region.

If the pair dives beneath the 200-day SMA, which overlaps with the lower Bollinger band, it could open the way for a retest of the 1.2490 support level ahead of the 1.2420 barrier. More losses could drive the bears until the 1.2200 psychological level before meeting again the six-year low of 1.2012.

On the other side, a successful attempt beyond the short-term SMAs could push the price until 1.2770 and the upper Bollinger band around 1.2828. Overcoming these obstacles, the 1.2900 and 1.2950 levels could be the next targets.

Overall, USDCAD has been in a bullish tendency over the last four months; however, any declines below the 200-day SMA could shift the bias to neutral.