The USDCAD pair extended its downside movement on Wednesday, as it broke below a key support level at 1.3527. The pair had been trading in a narrow range over the past few sessions, but the break below support saw a sharp drop in prices.
Looking ahead, the USDCAD pair is likely to face further downside pressure in the near term. The next support level is located at 1.3400, which could be tested in the coming days. A break below this level could open the door for further downside towards the 1.3300 level.
On the upside, the pair would need to break above resistance at 1.3550 to signal a potential reversal of the current downtrend. If this level is breached, another rise towards 1.3667 resistance could be seen.
In summary, the USDCAD pair has broken below a key support level at 1.3527, indicating further downside movement in the near term. The next key support level is at 1.3400, while resistance is at 1.3550. Only a break above resistance could signal a potential reversal of the current downtrend.