The Canadian CPI data came in slightly hotter than expected, giving the CAD a boost and pushing USDCAD lower. From a technical perspective, the pair has broken below both its 100-hour and 200-hour moving averages, now at 1.4037 and 1.40278 respectively. Those levels have flipped to near-term resistance.

As long as sellers can keep the price below the moving averages, downside momentum remains in play. A move back above would invalidate the short-term bearish bias.

Earlier this week, USDCAD had extended higher from its mid-September rally, briefly trading above the 38.2% retracement of the 2025 range at 1.40212 and the swing zone between 1.4010 and 1.4026. The current break back below that area — and ability to hold beneath it — is an important bearish signal.

The video above details the setup: sellers are attempting to reclaim control after weeks of steady buying. The key question now — can they sustain the momentum below the broken support zone?

Source: Investing Live