USD/CAD - USD/CAD Weekly Outlook! - 06/30/2016 (GMT)

The USD/CAD pair plunged for a second consecutive day and is now trading back below the key level of 1.3000. The 50-SMA and the 100-SMA, both are providing a significant support to the price action right below the 1.3000 barrier, but following the aggressive sell-off after the failed attempt above the 1.3100 region is a question how long the bulls can withstand the pressure at the region. Technically, the short-term picture is neutral-to-bearish, as in the 4-hour chart, the momentum indicators remain around the 100 level whilst the RSI indicator heads modestly lower below 50. On the daily chart, the price is hovering around a bearish 50-SMA, still unable to confirm a break above the 100-SMA. Therefore, we remain bearish on this pair, targeting first the 1.2900 and then the 1.2850 barrier.