Like many other currency pairs, the USDCAD is moving in the direction of a lower dollar and in the process is stretching toward a key technical target. The pair is moving closer to its 61.8% retracement of the 2023 trading year. That level comes in at 1.33999. The low price today has reached 1.34192. A move below the 1.3400 level, would open the door for more downside probing. The low price from September reached 1.3378 (that would be the next target)
Recall, that yesterday the price moved down to test the 50% midpoint at 1.3495. That level, along with the breaking of the 200-day moving average at 1.3511, is now a key barometer for buyers and sellers off the longer-term daily chart. Staying below those levels keeps the sellers more in control. If the price were to move back above those levels the longer-term sellers who jumped on the break(s) lower, would be disappointed.
This article was written by Greg Michalowski at www.forexlive.com. Source