USD/CAD Technical Analysis: Pullback expected from 11-month-old support trendline

• USD/CAD remains on the back foot near 14-month low.
• Oversold RSI indicates a bounce from a descending trend line since February 2019.
• October low can act as an immediate upside barrier.

USD/CAD declines to 1.2980 amid the Asian trading session on Thursday. The Loonie pair remains under pressure around multi-month low but oversold conditions of RSI and the nearness to key support line increase the odds of a pullback in prices.

In doing so, October month low near 1.3045 will gain the buyer’s immediate attention ahead of December 18 bottom surrounding 1.3100.

However, bulls will not be pleased unless the quote rallies successfully beyond the 200-day SMA level of 1.3267 on a daily closing basis.

Alternatively, pair’s failure to respect oversold RSI and the key support line, at 1.2958 now, will drag it towards October 2018 low near 1.2780.

USD/CAD daily chart

Trend: Pullback expected