The US Dollar started a major downside move from the 1.3260 resistance area against the Canadian Dollar. The USD/CAD pair declined below the 1.3200 support level to enter a short-term bearish zone.
The pair even broke the 1.3150 support and settled below the 50 hourly simple moving average. It traded as low as 1.3126 and later started an upside correction.
The pair recovered above the 1.3150 level and the 23.6% Fib retracement level of the recent decline from the 1.3237 high to 1.3126 low. However, there is a solid resistance waiting on the upside near the 1.3180 level and the 50 hourly SMA.
More importantly, there is a declining channel in place with resistance at 1.3182 on the hourly chart. Therefore, upsides are likely to be capped near 1.3180 and the 50 hourly SMA.