Although oversold RSI seems to challenge the break of a year-old rising trendline, the USDCAD pair needs to provide a daily closing beyond the 1.3100 mark, comprising the support-turned-resistance, to restore buyer's confidence. Following that, prices can rise to September month low near 1.3140 whereas 1.3180 and 200-day EMA level of 1.3235 could entertain bulls then after.
On the downside, pair's declines below the recent low surrounding 1.3040 may take a rest around July month bottom around 1.3015 prior to visiting 1.3000 psychological magnet. It should also be noted that October 2018 low close to 1.2915 and 1.2880 could please sellers afterward.
Other than technicals, markets will also focus on the monetary policy decisions by the US Federal Reserve and the Bank of Canada (BOC). While the Fed is widely anticipated to cut the benchmark rate by 25 basis points (bps), the BOC isn't expected to offer any such clues. As a result, investors might keep an eye over the monetary policy divergence between the Fed and the BOC to determine the pair's weakness.