• USD/CAD fades recovery moves from 1.2719, stays inside short-term falling channel.
• Multiple resistance lines, bearish chart pattern join normal RSI to favor bears.

Following its failure to extend the week-start corrective recovery beyond 1.2735, USD/CAD eases to 1.2725, currently near 1.2730, during Monday’s Asian session. In doing so, the loonie pair stays inside a falling channel formation established since December 22 amid an absence of overbought or oversold RSI conditions.

Not only the bearish chart formation but descending trend lines from December 28 and December 21, respectively near 1.2755 and 1.2810, also add to the upside filters.

Given the pair’s sustained trading below short-term resistance lines inside descending channel, amid normal RSI, sellers are likely to attach the stated channel’s support line around 1.2700 as immediate support.

However, any further declines will defy the channel while eyeing the horizontal area including lows marked since December 15, near 1.2690/88.

Meanwhile, the channel’s resistance around 1.2795 adds to the upside filter while USD/CAD bulls’ dominance past-1.2810 will aim for the late-December top near 1.2960.

Overall, the USD/CAD prices are likely to remain depressed near the multi-month lows marked in the previous month.

USD/CAD hourly chart

Trend: Bearish