USDCAD is hovering above the 1.3300 mark after several days of trying to break the 1.3225 support level. The short-term bias is neutral to bearish as the RSI is flattening below the neutral threshold of 50; however, the stochastic is showing positive signs as the %K and the %D lines posted a bullish crossover in the oversold zone.
If the market rises, it may encounter opposition between the bearish cross of the 20-day and 50-day simple moving averages (SMAs) at 1.3530 and the 1.3570 key level. If the market staged a major rally, it might try to break over the 1.3850 resistance level on its way to retesting the 1.3980 high, which is the 29-month high.
If the pair falls below the crucial level of 1.3225, the 200-day SMA around 1.2990 may provide initial support. However, steeper drops might send the pair tumbling towards the 1.2900-1.2950 area, turning the outlook to negative.
All in all, USDCAD is failing to improve the rebound off 1.3225, so any moves below it may continue the bearish correction in the short-term.