USDCAD Tests Bearish Trend line

The USDCAD pair stalled at the strong bearish trend line and was trading marginally lower on Monday, at around 1.3080 during the London session.

Bulls are trying to hold the pair above the medium-term bearish trend line, which is seen at around 1.3090. If the pair stays above this level, the outlook could be bullish, targeting Friday's highs at 1.3130. It could move to the 1.32 zone, where previous highs are located.

On the other hand, should the USDCAD pair decline back below the trend line, the outlook might be bearish (bullish for the Canadian dollar), with bears probably eyeing up Friday's lows near 1.3030. If this support is broken as well, the next zone might be near 1.2990.

However, Friday's miserable Canadian inflation data, combined with oil trading near one-month lows, may be negative for the Loonie and therefore, dips could be bought on the USDCAD pair.

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