FXStreet reports that Benjamin Wong, Strategists at DBS Bank notes, a technical pattern shows potential of prolonged CAD weakening.

“Looking at the weekly chart, the decline to 1.2007 and consequent stabilising reminds us of the rectangular support from the prior 1.1920 (May 2015) and 1.2062 (September 2017) key bottoms. If this holds, the potential for prolonged CAD weakening remains a plausible path.”

“The recovery so far has taken on a bullish MACD (moving average convergence/divergence) turn-up as the standard deviations measure also flag USD bottoming signs. Using its moving average guidance, USD/CAD nonetheless has yet to surmount the key moving average at 1.3112 – a reminder that USD/CAD’s movements are often chunky.”

“The Ichimoku daily chart now pegs 1.2270 Kijun support, and that should be a pivotal level to monitor in the near-term.”