USDCAD under pressure as price breaks key support and enters swing area

The USDCAD is trading lower on the day, down -0.42%, and has fallen below key technical levels on both the daily and 4-hour charts. On the daily chart (see chart above), the pair has broken beneath a rising trend line near 1.3650—now serving as close resistance—and is trading at its lowest level since October 8, 2024. The current low has reached 1.36136, underscoring continued downside momentum.

On the 4-hour chart (see chart below), the price has moved into a swing area that spans from 1.36038 to 1.36224, a zone that defined support and resistance between August and October of last year. Importantly, the pair has also moved below last week’s low at 1.36337, shifting the near-term bias further in favor of the sellers.

With the break below the daily trend line, and the price close to breaking the lower swing area on the 4-hour chart that would put the pair in the “lower extreme,” traders can start to think toward the lows from September 2024 near 1.34198. A move to and through that level would take the pair to the lowest level going back to February 2024.

Key technical levels:

• Resistance: 1.3650 (broken trend line), 1.36337 (last week’s low)

• Support: 1.36038–1.36224 (swing area), 1.34198 (October 2024 low)