The USDCAD pair declined during its recent intraday trading due to the firmness of the 1.3940 resistance level. The pair is now attempting to form a higher low that could serve as a base to help it regain positive momentum and resume its recovery.

This comes amid continued positive pressure as the price trades above EMA50, which reinforces the stability and dominance of the main short-term bullish trend. In the background, we also notice that the relative strength indicators have reached deeply oversold levels, excessively compared to price movement, suggesting the potential formation of a positive divergence, which supports the chances of a bullish move.