Bearish continuation on the USD/CAD

There is a well sustained bearish trend on the USD/CAD, supported by the recent rally on oil. On the daily chart we can see that the 21 period exponential moving average continues acting as a good resistance and continues holding the price down on the pair. At the moment, the 1.2600 level is acting as a temporary support, because if we stop for a minute to analyze the chart, we can see that the pullbacks or “resting points” have served as a good opportunity for new sellers to come into the instrument. Below the 1.2600 level, its next support could be the 1.2500. To the upside, we don’t see any important resistances until the 21 day exponential moving average.