USDCAD Technical Analysis Summary
As of February 7, 2025, the USDCAD currency pair is experiencing downward pressure from sellers, currently hovering around the 1.3591 level. This movement marks a retest of the low established the previous day.
Current Market Dynamics
The USDCAD has been on a downward trajectory for approximately five hours, distancing itself from the 100-hour moving average (MA), indicated by a blue line on the chart. Buyers attempted to push the price above this MA yesterday but failed to maintain momentum, particularly as they could not surpass the 50% retracement level of the upward move from the June low.
Key Levels to Watch
The current price action is critical as it approaches the low from yesterday at 1.3591. A break below this level would bring the pair into a significant support zone, with the next key support levels being 1.3539 (the low from June 16) and 1.3554 (the low from June 17).
Market Sentiment
At present, sellers are firmly in control of the market. Should the price hold above the 1.3591 support level, the bias remains bearish, but a recovery above 1.3617 could shift sentiment, prompting traders to look for a retest of the 100-hour MA once again.
Conclusion
In summary, the USDCAD is currently under selling pressure, with critical support at 1.3591. Traders should monitor this level closely, as a break could lead to further declines, while a recovery above 1.3617 may indicate a potential reversal in sentiment.