USD/CAD Price Analysis: Bearish RSI divergence teases sellers around 1.3650

• USD/CAD retreats after the second failure to stay beyond 1.3700.
• Bearish RSI divergence, failure to keep the bounce off 50-SMA favor sellers.
• Multiple supports to challenge the downside, 1.3510 acts as the last defense of buyers.

USD/CAD remains pressured around 1.3650, following another failure to break the 1.3700 threshold, as bears flex muscles during early Tuesday.

In doing so, the Loonie pair justifies the bearish divergence between the prices and the Relative Strength Index (RSI) indicator, placed at 14. The reason could be linked to the quote’s latest higher high formation on the prices and lack of commensurate moves by the RSI line.

However, the 50-SMA level surrounding 1.3620 seems to restrict the immediate USD/CAD downside.

Following that, a convergence of the 100-SMA and an upward-sloping trend line from December 05, around 1.3570-65 by the press time, could challenge the pair sellers.

It’s worth noting that a five-week-long ascending support line, close to 1.3510, acts as the last defense of the USD/CAD bulls, a break of which could give control to the sellers.

Alternatively, a successful break of the 1.3700 round figure becomes necessary for the USD/CAD buyers.

Even so, November’s high near 1.3810 and multiple hurdles near 1.3830 and 1.3850 could challenge the Loonie pair buyers before directing them to the yearly top marked in October around 1.3980.

USD/CAD: Four-hour chart

Trend: Further downside expected