The USDCAD moved sharply lower on Friday after Canada’s GDP report came in weaker than expected. The fall stalled near a key technical level—the 50% midpoint of the rise from the mid-September swing low to the early-November high. That midpoint comes in at 1.39367, and Friday’s low held just above it at 1.39374, keeping buyers "in play" at that support zone.
The rebound that followed pushed the pair back above the swing area between 1.3968 and 1.3975, and the rally extended into today’s European morning session with a high of 1.3991. However, the last several hours have seen a steady rotation lower, with the price slipping back below that same swing area.
That 1.3968–1.3975 zone now becomes close resistance for traders, alongside the broken 38.2% retracement at 1.39847. Staying below those levels keeps the short-term bias tilted to the downside.
On the downside, the key target remains the 50% midpoint at 1.39367. A break below that level would likely shift focus toward the converging 100- and 200-day moving averages near the 1.3895 region, where stronger buyers may look to reassert support.
