The USDCAD pair has experienced continued downside momentum, extending its move lower from the recent high of 1.3386. Breaking below the key support level at 1.3116, the pair has now reached as low as 1.3092. This downward move suggests that further decline could be on the horizon, with the next target in focus at the 1.2950 area.
The breach of the 1.3116 support level indicates a strengthening bearish sentiment in the market for USDCAD. Traders should pay close attention to the prevailing momentum and be prepared for potential downside continuation. The 1.2950 area represents an important support zone where buyers might step in and attempt to halt the decline. However, a decisive break below this level could open the door for further losses towards the next significant support level.
On the upside, immediate resistance can be seen near the 1.3160 level. A break above this resistance would suggest a temporary halt in the downward move and could potentially bring the price back towards the 1.3240 area. However, for a more significant reversal, a sustained break above key resistance levels and a shift in market sentiment would be required.
In conclusion, the USDCAD pair has extended its downside move, breaking below the key support level at 1.3116. The next target for the pair is around the 1.2950 area. Traders should remain cautious and watch for any potential reversals or significant breakouts in the price. Key resistance is observed near 1.3160, and a sustained break above this level would suggest a temporary pause in the downward momentum.