Forex: USD/CAD starts week quiet; back below 0.9800

FXstreet.com (San Francisco) - USDCAD is back below the 0.9800 mark after peaking at 0.9806 and encountering resistance at the 21-day EMA early in the US session. The underlying trend bias remains bearish as higher timeframes depict the order of moving averages diverging and aiming to the downside, suggesting the downward momentum is still intact. If USDCAD again finishes practically unchanged on the day, a test of resistance in the 0.9840 area (Sep 4 low) is still possible. "For the coming sessions, a topside break should be able to return fairly easily to the 0.9850 area, while a downside break should look to the 0.9715/25 area initially," says TD Securities.