USDCAD Update:Monitoring swing area and retracement levels amid new cycle low and reversal | Forexlive

The USDCAD reached a new low today, dating back to March 7th, dipping to 1.3630 and surpassing Tuesday’s low of 1.3642. However, the currency pair has since reversed course, moving back into a key swing area between 1.3651 and 1.3665 (indicated by red numbered circles). Notably, the 50% retracement level of the rise from the February 20th low also lies at 1.3651.

Traders are now closely watching the 1.3665 resistance level as a determinant of the market’s direction. If this level holds resistance, and the price moves back below the 50% retracement at 1.3651, we may witness an acceleration in downward momentum. The next crucial target is 1.36014, a level that holds dual significance – it resides just above the natural support at 1.3600 and corresponds to the 61.8% retracement of the increase from the February 20th low.