Since the beginning of the year the currency lost over 7.0% also last week fell more than 0.5% and is in a warning phase since early October. Last week the USDCAD fell with a narrow range and closed near the low of the week, however the currency pair managed to close within the previous week range, which suggests being slightly on the bearish side of neutral. The currency pair is trading below the 50 week moving average that should provide dynamic resistance but is above the 10 and the 200-week moving averages and both should provide a good dynamic support. The stochastic is setting higher lows while price is making lower lows, signs of a potential bullish divergence. Expecting an upward move to a weekly resistance at 1.2835 on a break above the previous week high at 1.2558 (scenario 1) although a break below the previous week low at 1.2432 could set in motion another downward move to a weekly support at 1.2086 (scenario 2).