USD/CAD Price Analysis: Sellers eye 200-SMA amid bearish technical setup

USD/CAD is feeling the pull of the gravity in early European trading, monitoring the throwback in the US dollar alongside the Treasury yields.

Additionally, renewed electrical energy seen in WTI costs appears to be boding properly for the resource-linked loonie, as the essential flirts with every day lows above the midpoint of the 1.2700 level.

The dollar’s pullback moreover collaborates with the rising channel breakdown on the 15-minutes chart, which is likely to exacerbate the ache in USD/CAD.

The bears now intention the 200-simple transferring frequent (SMA) aid at 1.2742, with the Relative Strength Index (RSI) probing the oversold territory, at the time of writing.

The decline gathered steam after the cost decrease by means of the indispensable information at 1.2778, which the convergence of the 50 and 100-SMAs.

Any pullbacks will be likely restrained with the useful resource of the latter. The route of least resistance appears to the downside, as the 21-SMA is on the verge of crossing the 50 and 100-SMAs from above, confirming a bearish crossover.

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