USDCAD - Red light

USDCAD (1H) - short term bearish bias

The US dollar came to a halt at the previous daily high of 1.3330 and is likely to pull back toward the moving averages. On the hourly chart, yesterday's engulfing red candle took a lot of longs out of action. The bearish MA cross is a strong sign that sentiment has turned south and we would expect fresh sellers to put pressure on the greenback. As the pair consolidates around the 20 and 30-hour MA, a renewed round of sell-off would push the price toward 1.3200.

Key support: 1.3200
Key resistance: 1.3320