• USDCAD grinds higher after bouncing off the 100-DMA.
• Downbeat RSI, MACD conditions favor bears but multiple hurdle before 1.3200 challenge further downside.
• 50-DMA, monthly resistance line add to the upside filters.

USDCAD treads water around 1.3315, after bouncing off the two-month low surrounding the 100-DMA during early Tuesday morning in Asia.

That said, a clear downside break of the support-turned-resistance line from early August, around 1.3400 by the press time, keeps sellers hopeful.

Also keeping sellers hopeful are the downbeat Relative Strength Index (RSI), (located at 14), as well as the bearish MACD signals.

However, a daily closing below 1.3315 becomes necessary for the USDCAD bears to aim for the early September swing high, surrounding 1.3200.

Alternatively, the aforementioned resistance line, previous support near 1.3400, precedes the 50-DMA hurdle surrounding 1.3530 to challenge USDCAD bulls.

In a case where the USDCAD pair manage to stay firmer past 1.3530, a downward-sloping resistance line from October 13, close to 1.3730, will act as the last defense of the pair bears.

Following that, a run-up toward refreshing the yearly high, currently around 1.3980, can’t be ruled. Also acting as an upside filter is the 1.4000 psychological magnet.

Overall, USDCAD is likely to recover but the upside move appears tepid.

USDCAD: Daily chart

Trend: Limited recovery expected