Since the start of the year the currency lost almost 5.0% and last week was no different with a loss of more than 1.0% in addition is in a warning phase since early December.
Last week the USDCAD fell with a narrow range and closed near the low of the week, in addition managed to close below the previous week low, which suggests a strong bearish momentum.
The stochastic crossed below the overbought zone and is showing a strong bearish momentum although is still above the 50 mid line.
Expecting an upward move to a weekly resistance at 1.3456 on a bounce from the lower end of a weekly resistance a 1.3154 (scenario 1) however a break below the rising wedge low at 1.3100 may set trigger a bearish run down to the weekly support at 1.2835 (scenario 2). Also a bounce from the weekly support at 1.2835 may push the currency back up to the weekly resistance at 1.3456 (scenario 3).