USD/CAD Consolidation Continues Below Key Support

The USD/CAD pair continues to trade in a narrow band, struggling to break out of its consolidation range below 1.3900.

This comes despite the Canadian consumer inflation figures released on Monday, which have underpinned the commodity-linked Loonie and acted as a tailwind for the USD/CAD pair.

The Relative Strength Index (14) is sitting in oversold territory near 29, hinting at stretched downside conditions. The Moving Average Convergence Divergence (MACD) indicator remains below zero with negative readings.

A convincing break below the 200-day Simple Moving Average (SMA) at 1.3848 is needed to back the case for deeper losses to the 61.8% Fibonacci retracement level at 1.3822.