The USDCAD declined at the start of the Asian session and in doing so broke below its midpoint of 50% of the upside from the April 21 low. This level comes in at 1.27677. The price has remained below this midpoint level since the break. Stay below the 50% retracement and the sellers maintain firm control.
Moving lower, the pair may have dipped below a descending trend line connecting the May 18th, May 19th, May 20th and May 23rd lows (see numbered red circles). This trend line currently intersects at 1.2737 (and is moving lower). The current price is trading at 1.2732. Sellers under control.
The next downside target targets 1.2712 to 1.27199 (see numbered green circles). Below, the 100-day moving average comes back into play at 1.2695.
The USDCAD price has not traded below its 100-day moving average since April 22. The 61.8% retracement of the rise from the April 21 low also cuts right off that 100-day moving average, raising levels of importance going forward. This would be a key barometer for buyers and sellers looking for more downside. To be aware.