USD/CAD Draws a Bearish Crossover and Trades Around 1.40

USD/CAD appears inherently volatile as it fails to give a shot above 1.414 resistance and lacks steady support. After giving consecutive higher highs until the previous week, the pair lacks momentum and falls to trade in a steady range. As the downside keeps prevailing, the commodity-linked currency is not rebounding good recovery of oil price and subdued demand of the US Dollar.

The bulls lost the game and gave in around the price mark of 1.466, and the bears became stronger thereafter, which calls for strong resistance at 1.466 after nosediving as low as 1.322. Since then, USD/CAD is failing to have a persistent trade above 1.466, and moreover, in the ongoing month, the pair has failed to hit above 1.417, which is acting as an immediate resistance, while currently trades at 1.402.

The technicals remain strong bearish, resulting in the USD/CAD to lose steady support from after it fell below 1.407 and 1.405. The pair failed to keep up with the previous week’s last day gains and fell, just at the onset of the new trading week. This fall embraced to the lack of traction lured by the US Dollar and was seen hitting lows on Friday in the previous week.

Although the pair is seen losing, it has managed to stay within the range, and if the price falls even further, the major support will be around 1.39, and a further dip will lead to breaching the lower price of the range, digging deeper losses. While a successful move above 1.41 will lead the USD/CAD pair to consolidate above the streamlined resistances easily.