USDCAD Bearish Momentum May Extend to 1.424

USDCAD stayed below 1.446 resistance and shifted under the 50-period SMA in yesterday’s trading session. If the 23.6% Fibonacci resistance level holds, the current downtick in momentum will likely extend to 1.424.

USDCAD Technical Analysis – -January-2025

FxNews—The American dollar has been in a bull market against the Loonie, but the exchange rate dropped $1.0 from Monday, January 6. Consequently, the currency pair flipped below the 50-period moving average, increasing speculations on trend reversal.

As of this writing, USD/CAD trades at approximately 1.431, facing the 38.2% Fibonacci retracement level as support.

Regarding the technical indicators:

• The RSI 14 depicts 39 in the description and is declining, meaning the bear market gains strength.
• The Stochastic Oscillator shows 25 in the description, indicating that the prices are not oversold and that the downtrend can resume.
• The Awesome Oscillator histogram is red, below zero, interpreted as the bear market should prevail.

Overall, the technical indicators suggest that while the primary trend is bearish, USD/CAD bears need to push harder for the downtrend to resume.

USDCAD Bearish Momentum May Extend to 1.424

The immediate support is at 1.429, backed by the 38.2% Fibonacci level. From a technical perspective, the downtrend could extend to lower support levels if bears (sellers) push USD/CAD below 1.429.

If this scenario unfolds, the next bearish target could be 1.424, a support area backed by the 50.0% Fibonacci retracement level.

Please note that the bearish outlook should be invalidated if USD/CAD’s value exceeds 1.435.

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The Bullish Scenario

The immediate resistance is at 1.435. From a technical standpoint, a new bullish wave could emerge if USD/CAD prices exceed 1.435. In this scenario, the next bullish target could be retesting the 1.446 critical resistance level.

USDCAD Support and Resistance Levels – 7-January-2025

Traders and investors should closely monitor the USDCAD key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.