USD/CAD Price Analysis: Bears can ignore consolidation towards 1.3100

• USD/CAD retraces losses from the September month’s low, flashed the previous day.
• Break of two-month-old support line, absence of oversold RSI favor the sellers.
• 50-day SMA adds to the immediate upside barrier.

USD/CAD rises to 1.3060 during the early Friday morning in Asia. In doing so, the loonie pair consolidate losses from the lowest since September 01 while also keeping the downside break of a nine-week-old support line, now resistance.

Other than the sustained break of the stated trend line, RSI’s move beyond the 30 level also backs the USD/CAD sellers.

As a result, the current pullback towards the previous support line, at 1.3110 now, isn’t expected to convince the USD/CAD bulls.

If at all the quote rises past-1.3110, which is less likely, the 50-day SMA level of 1.3205 can probe the pair’s further upside.

On the contrary, the yearly bottom surrounding the 1.3000, registered in September, gains immediate attention of USD/Cad bears ahead of December 2019 low close to 1.2950.

USD/CAD daily chart

Trend: Bearish