USD/CAD Sellers Push to Break Range-Bound Market
Market Overview
The USD/CAD pair continues to trade within a broad range on the daily chart, reflecting indecision among market participants. However, recent price action suggests that sellers are attempting to regain control. The US Dollar has come under renewed pressure, while the Canadian Dollar benefits from firmer oil prices and expectations of stable domestic economic performance. In this environment, traders are closely watching key support levels as the pair nears a potential breakout from consolidation.
Technical Analysis
USD/CAD has declined from the range top at 1.44012, and the recent breach of 1.42636—the weekly low—has intensified bearish sentiment. Sellers now aim for the support zone between 1.42262 and 1.42393. A break below this region could open the path toward deeper levels at 1.41786, 1.41260, and 1.40410.
Technical indicators reflect growing downside momentum. The RSI remains below 50 and continues to fall, indicating persistent bearish pressure. Likewise, the MACD histogram deepens below the zero line, supporting the bearish outlook. Although price trades beneath the key moving averages, the averages themselves remain flat, highlighting the broader range-bound structure and suggesting traders should remain cautious.
Only a decisive move above 1.43162, followed by a breakout through 1.44012, would invalidate the current bearish bias and shift momentum back in favour of buyers.
Key Technical Levels
- Resistances: 1.42636, 1.43162, 1.44012
- Supports: 1.42262, 1.41786, 1.41260, 1.40410
Fundamental Drivers
Today’s primary focus is the US durable goods orders report, expected to show a monthly decline. A weaker-than-expected reading would likely weigh further on the US Dollar, reinforcing the current bearish tone in USD/CAD. In contrast, stable Canadian economic conditions and firm oil prices continue to support the Canadian Dollar, offering a fundamental backdrop for continued downside.
Conclusion
USD/CAD is leaning bearish within a range-bound structure, with sellers targeting 1.41786 and 1.41260. A move above 1.43162 would negate downside risks.
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