USDCAD is posting losses again after finding resistance at the 1.2490 barrier, inserting in the Ichimoku cloud. The RSI is ticking lower in the positive region, while the MACD is moving south in the bullish territory, confirming the recent downside movement. However, the 20- and 40-day simple moving averages (SMAs) created a bullish cross.
If the price moves lower and penetrates the 1.2200 handle, it would hit the short-term SMAs at 1.2180 before flirting with the six-year low of 1.2012. Underneath these levels, the low from May 2015 at 1.1920 could halt the bearish actions.
In the positive scenario, a move higher could drive the price until 1.2490 before the bulls meet the 1.2645 key level and the 200-day SMA at 1.2684. If the pair heads further north, the 1.2750 and the 1.2950 barriers may attract attention.
In conclusion, USDCAD has failed to continue the ascending move that started in the beginning of the month, with the pair drifting lower.