• USDCAD pares recent losses at the lowest levels in seven weeks.
• Bearish MACD signals, clear break of three-month-old support line favor bears.
• Buyers need validation from 50-DMA while 100-DMA acts as an extra filter to the south.

USDCAD prints mild gains around 1.3330 as it consolidates the previous day’s downside near the lowest levels since late September. Even so, the Loonie pair remains on the bear’s radar as it stays below the previous key resistances.

That said, a sustained trading below the 50-DMA joins a clear downside break of the ascending support line from early August, now resistance around 1.3370, to challenge the USDCAD buyers.

Also keeping the pair sellers hopeful are the bearish MACD signals and an absence of the oversold RSI despite the previous day’s slump.

As a result, the USDCAD bears are all set to revisit the 100-DMA support surrounding 1.3230. However, the 61.8% Fibonacci retracement of the pair’s August-October upside, near 1.3200, could challenge the pair’s further downside.

Meanwhile, the aforementioned support-turned-resistance line restricts the USDCAD pair’s immediate recovery near 1.3370, a break of which could direct the buyers toward the 50-DMA level of 1.3525.

In a case where the USDCAD remains firmer past 1.3525, the odds of witnessing a run-up towards the monthly high near 1.3810 can’t be ruled out.

Overall, USDCAD is well-set for further downside despite the latest adversities.

USDCAD: Daily chart

Trend: Bearish