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USD/CAD drifts below DMAs with attempts of 21DMA crossover

FX:USDCAD   U.S. Dollar/Canadian Dollar
131 0 5
Bulls halted again and current prices drift below DMAs but testing support at 1.2905, the breach below exposes more downside potential, else bulls have equal chances.

Bulls in the dollar have tested resistance at 1.3145 levels when the short term trend is oscillating within sideways from last fortnight or so (see rectangular area).

It seems that USD taking a halt from its intermediary Bull Run against CAD cushioned crude oil             price consolidation which has begun especially after last week’s inventory check and OPEC meeting.

On a broader perspective, the pair has dipped from the highs of 1. 4689             levels to the recent lows of 1.2460 and currently hovering at 1.2957 levels, it’s been tumbling in this range from last 6 months, so what do you interpret from this price behaviour?

But for now, on daily charts we could foresee the pair to drag slumps to retest the supports up to 1.2905 levels for sure, intraday charts still pass on some sort of bullish momentum but we advise use any abrupt rallies for near-term shorts.

Both leading oscillators signal selling pressures, as RSI (14) evidences a bearish convergence with the dipping price spikes from an overbought zone, currently trending downwards below 60 levels, so we believe there has been a  bearish sensation on this pair.

While clear bearish crossover on stochastic from an overbought zone on daily charts signals selling momentum .

However, for a long-run uptrend reversal is still conditional upon breach of stiff resistance at 1.3070 levels. Well, for now, it would be conducive for bears with selling momentum offered by leading oscillators. Thus, it wise to trade in boundary binaries (BB) with higher strikes at 1.3001 and lower strikes at 1.2905, the trading range offers about 50 pips on either side at current spot reference 1.2957.
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