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USD/CAD Looks Bearish and Challenges Near-term Support

USD/CAD has been bearish since the 1.1278 high on the year was established on 3/19. It has falling to 1.0814 in May and is consolidating.

(usdcad daily chart)

The consolidation is between 1.0814 and 1.0941,which has been a previous resistance pivot in the very short-term. The ability to stay south of 1.10 reflects a bearish market still in play.

When you look at the 1H chart, you see a market that has been trying to come off this week's low just above 1.0835. However, price has stalled at 1.0885 after the two bullish swings. It is now challenging a near-term rising trendline.

(usdcad 1h chart, 5/29)

Bearish outlook:
A break below 1.0850 should clear this support, return the intra-day outlook to a bearish one, which would be aligned with the medium term outlook seen in the daily chart.

This bearish outlook has the 1.0737-1.0750 - area with previous resistance and 200-day SMA - in sight.

At this point, only a return above 1.10 should kill the bearish outlook as it can put the focus back towards the 2014-highs at 1.12 and 1.1278.