USDCAD trades to new lows. Eyes support at 1.38607 | Forexlive

The USDCAD remains under pressure, continuing its slide that began last week after the pair tested and failed at the 200-day moving average on two occasions (higher green line currently at 1.4016).

The price traded above and below the 100 and 200 hour MAs over the last two trading days, with the 100 hour MA stalling the last rally yesterday before rotating lower. When the price fell below the lows from Monday and Tuesday near 1.3917 in the Asian session today, the sellers pushed lower.

Price is now trading to new lows and is testing a key swing level near 1.38607. A break below this level would put the price in the lower extreme area for 2025 which bottomed at 1.37497.

Resistance now comes in between 1.3891 and 1.3904, which must be cleared to ease the bearish bias and shift near-term control back toward buyers.

Looking at the daily chart below, the low price for 2025 stalled just ahead of the 61.8% of the move up from the 2023 low at 1.37415 (the low reached 1.37497 within 8 pips of that target). Swing levels toward that low would eye 1.3646 and below that the low from April at 1.3780.

Sellers are in control.

Key levels:

• Support: 1.38607, 1.3825, 1.3749 (2025 low extreme), 1.37415 (61.8% off daily)

• Resistance: 1.3891–1.3904, 1.3917 (swing level) 1.3949 (100-hour MA), 1.4016 (200-day MA)

• Bias: Bearish below 1.3904, downside risks increase on break of 1.3860

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