USD/CAD Price Analysis: Hangs near multi-month lows, around 1.3200 mark

• USD/CAD remained under some selling pressure through the early North American session.
• The near-term technical set-up supports prospects for a slide towards trend-channel support.

The USD/CAD pair maintained its offered tone through the early North American session and has now moved well within the striking distance of six-month lows set last week. The recent downfall over the past 1-1/2 month or so has been along a downward sloping channel, which points to a well-established bearish trend and supports prospects for further weakness.

Meanwhile, technical indicators on 4-hourly/daily charts maintained their bearish bias and are still far from being in the oversold territory, reinforcing the near-term bearish outlook. Hence, a subsequent fall below the 1.3200 round-figure mark will set the stage for an extension of the downward trajectory towards challenging the channel support, around the 1.3230 region.

On the flip side, any attempted recovery move might continue to confront a stiff resistance near the 1.3270 supply zone and remain capped near the 1.3300 round-figure mark. That said, some follow-through strength might trigger a short-covering move and lift the pair further towards the top boundary of the mentioned channel, currently near the 1.3335 zone.

USD/CAD 4-hourly chart

Technical levels to watch