The USD/CAD consolidation might end if 1.3513 is broken to the downside

• USD/CAD is over half a percent lower on Monday as dollar weakness sets in.
• The pair has been in a sideways consolidation mode for a while and now things might change.

USD/CAD 1-hour chart

USD/CAD has been in a consolidation pattern since 15th June. On Monday some bearish pressure has set in and the price looks like it could hit the consolidation floor of 1.3513. There have been lots of analyst forecasts looking for USD/CAD to move higher as the price sold off extensively between 19th March (1.4668) to 10th June (1.3314).

Looking closer at the technicals, the price has just shot through the 1-hour 200 period Simple Moving Average to the downside. This means now the 55 and 200 have been broken recently. Both indicators on the chart are also looking bearish too, the Relative Strength Index is nearly at the oversold zone. The MACD histogram is in the red and the signal lines are also below the mid-zone. 

The next psychological support for the pair lies at 1.35 and at the moment the price is around 32 pips away from that level but if the bearishness is to continue and that support breaks then the main low on the chart of 1.3315 could be the longerterm target.

Additional levels