The USDCAD has made a break lower in early North American trading, taking the price below the 38.2% retracement level at 1.37184 and the converging 200 and 100 hour moving averages around the 1.3715 area. This suggests that sellers are currently in control of the market, at least in the short term.
To maintain this control, sellers need to ensure the price stays below the 1.37184 level. On the downside, the intraday low reached 1.3699, which is near a key support level from last week's trading and the psychological support at 1.3700. If the price can break and stay below this level, the next target for sellers lies between 1.3650 and 1.3665 (as indicated by the blue numbered circles on the chart).
If the price moves back above 1.37184, short-term traders who sold on the break may be disappointed. In this case, the price could target the highs and the upper swing area between 1.3735 and 1.37456 (as indicated by the green numbered circles), as well as the 50% midpoint at 1.37457. A move above 1.37457 would signal potential for further upside momentum.
In summary, sellers are currently in control of the USDCAD market, but they need to maintain the price below 1.37184 to stay in control. Watch for breaks below 1.3700 or above 1.37184 to determine the next potential price movement.
