USDCAD falls to key support level, setting up potential battle

USDCAD is moving to a new low going back to early August. The fall takes the pair toward the swing area that was in play earlier this year. That area on the daily chart comes in between 1.3298 to 1.33203.

In April and May swing lows stalled in that area and bounced to a higher swing area between 1.3641 to 1.3667. See the red box on the chart above

In June the floor was broken and the price swung above and below the swing area in June/July before basing against the low of the swing area in August. The pair is moving back toward the area now after heavy selling in November and December. The fall took the price back below the 200-day and the 50% of the 2023 range last week near 1.3500. The price is also back below the 61.8% at 1.3399 (call it 1.3400). Those are now risk-defining levels for traders. Staying below keeps the sellers in more control.

This article was written by Greg Michalowski at Source