USDCAD technicals
The USDCAD remains under selling pressure after failing to sustain gains above key resistance near 1.4009–1.4026 and the 200-day MA last week.
This week, the price on Wednesday fell below a swing area between 1.38917 to 1.3904. The break and hold below this zone gave sellers the green light to drive the pair even lower and they did on Wednesday.
Yesterday, the price corrected back toward the swing area again, with the high price reaching 1.3888 just short of the low of the swing area at 1.38917. Sellers still in control.
Today, the momentum lower continued with the pair now looking to test the lows of 2025 (and lowest levels since October 2024). That level comes between 1.37497 to 1.37698 (see red numbered circles).
Do the buyers stall the fall at the lows for 2025? Traders looking to buy a dip can lean with a stop below. However, be aware that the 61.8% of the move up from the 2023 low comes in at 1.37415 – just below the low from 2025. So it might be wise for dip buyers to wait on a break of that retracement level.
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