The USDCAD was in reversal mode on Monday, as bouncing oil prices and disappointing US data kept demand for the loonie elevated.
The USDCAD fell more than 100 pips in intraday trade. It would eventually consolidate at 1.2088, down 0.8 percent. The USDCAD is trading at its lowest level since January 20 when the market was riding a wave of upward momentum that culminated on February 2 with a close of 1.2688. Since then, the USDCAD has been relatively stable.
The pair is likely to find support at 1.2065 and resistance at 1.2210.
The trend outlook is bearish, although the daily RSI shows the USDCAD is quickly approaching oversold levels.