USD/CAD is currently trading slightly below a crucial support level!
Will this result in further USD/CAD losses?
As you can see, the psychological support level of 1.3300 that has held the USD/CAD pair steady since November 2022 is already below the price of the pair.
Remember that the pair had previously broken below a crucial trend line support a few months prior.
The daily chart today is made even more intriguing by the fact that the 100 SMA is exhibiting a bearish SMA crossover in opposition to the longer-term 200 SMA.
Are we witnessing the beginning of a reversal?
Stochastic is already displaying a "oversold" signal, so you should take note of that before you start selling USD/CAD like there's no tomorrow.
Additionally, the breakout candle is still quite close to the support zone for the broken range, thus the USD/CAD price may yet revert to its longer-term range.
If you believe that USD is poised to lose additional ground versus CAD, selling at present prices or at the confirmation of the following candlesticks would be a wise move.
The 1.3060 prior high is a nice place to start, but if there is enough momentum, you may also look at the 1.2900 levels.
You don't think the dollar may depreciate versus the Canadian dollar by any more pip?
Prior to aiming for earlier inflection points like 1.3450 or 1.3640, you can also wait for USD/CAD to return to its range.
