USD/CAD Price Analysis: Under pressures, eyes channel support

• USD/CAD looks set to extend its two-day losing run. 
• The pair eyes channel support at 1.3865.

USD/CAD is trading in a sideways manner near 1.3912 at press time with the daily chart indicating a path of least resistance for the downside. 

The pair fell by 0.40% on Friday, validating the preceding day's bearish engulfing pattern and close under the 50-day average. 

The bearish candlestick pattern is backed by a below-50 reading on the relative strength index and a negative reading on the MACD histogram. 

As a result, a drop to 1.3865 looks likely. That level is currently housing the lower end of the sideways channel represented by trendlines connecting April 13 and April 30 lows and April 21 and May 7 highs. 

A close under the channel support would indicate a resumption of the sell-off from the high of 1.4667 observed on March 19. On the higher side, a close above 1.4176 (Thursday's high) is needed to confirm a bearish-to-bullish trend change. 

Daily chart

Trend: Bearish

Technical levels