The bearish trend in USDCAD is evident as crucial technical levels are breached. The price has dipped below the 100-hour moving average of 1.44025, the 200-hour moving average at 1.4384, and a key swing area near 1.4366.
The 50% retracement level at 1.4345 has also been surpassed, indicating further downside pressure. Upcoming support includes the 61.8% retracement level at 1.4299, which could act as a target.
Bearish Momentum Strengthens
For sellers to maintain dominance, the pair should remain below the 200/100 hour MA levels at 1.4383 and 1.4402. A move above these would alter the short-term perspective to neutral or bullish.
The downward momentum in USDCAD has gained traction as price movements have consistently broken through levels that previously acted as barriers. The fact that both the 100-hour and 200-hour moving averages have been crossed from above suggests that sellers have taken control, at least for the moment. Moreover, the break below the 50% retracement level at 1.4345 reinforces the shift in sentiment. This price point often serves as an area where buyers attempt to regain footing, but the failure to hold above it signals an absence of strength from the buying side.
With the focus now turning to the 61.8% retracement level at 1.4299, traders should be aware that this area historically functions as a point of interest. If price approaches this level and rebounds, short-term buyers might attempt to enter. However, if downward momentum continues and this threshold is also breached, it would suggest that sellers remain firmly in control, increasing the likelihood of another leg lower.
Key Levels To Watch
From a risk management standpoint, the 200-hour and 100-hour moving averages remain key markers. These levels, now above the current price, have shifted from support to resistance. If buyers manage to push the pair back above 1.4383 and sustain momentum beyond 1.4402, market sentiment could shift, leading traders to reassess short positions. Such a development would indicate a loss of bearish momentum, potentially leading to further upside correction.
Short-term positioning will depend on whether price remains on a downward path or begins to stabilise. If buyers cannot reclaim ground above these moving averages, traders targeting lower price levels may continue to find opportunities. If a bounce occurs, those on the selling side will need to reassess whether the trend is beginning to shift. Monitoring price movements in relation to these defined levels will be essential when making decisions in the coming sessions.
