USD/CAD Price Analysis: On the defensive after ascending trendline breakdown

• USD/CAD has breached key ascending trendline support on the daily chart. 
• The pair risks falling to the 200-day SMA support at 1.3495.

USD/CAD has dived out of an ascending trendline connecting June 10 and June 23 lows, validating the bearish view put forward by last week's bull failure at the trendline falling from March highs. 

The downside break of the three-week-long rising trendline is backed by a below-50 or bearish reading on the 14-day relative strength index and the bearish crossover of the 50- and 100-day simple moving averages (SMA). 

As a result, the pair appears on track to test the 200-day SMA support, currently at 1.3495. At press time, the pair is trading largely unchanged on the day at 1.3560, having put in a high of 1.3575 early Friday. 

The bias would turn bullish if the pair clears the multi-month descending trendline hurdle, currently at 1.3667. 

Daily chart

Trend: Bearish

Technical levels