- December 10, 2020
- Posted by: Analysis Team
- Category: Forex News
- USD/CAD in bearish consolidation around 1.2800.
- Oversold conditions on the 1D chart warrant caution for bears.
- Downside more compelling with 1.2760 support likely at risk.
USD/CAD has halted its three-day recovery attempts, as the sellers return this Thursday, looking to attack the four-month-old descending trendline support at 1.2760.
The downside appears more compelling, despite the 14-day Relative Strength Index (RSI) wavering in the oversold territory, currently at 27.91.
The spot trades way below all the major daily moving average (DMA), backing the bearish case in the near-term.
A breach of the aforesaid critical support could expose the May 2018 low of 1.2729. Acceptance below the latter could put the 1.2700 level at risk.
To the upside, recapturing the bearish 21-DMA at 1.2977 is critical to negating the downside bias in the major.
Ahead of that the December 4 high of 1.2873 is the level to beat for the bulls.
USD/CAD: DAILY CHART