USD/CAD: Breaking Below Key Support

Chart Analysis:

USD/CAD is showing signs of weakness, having dipped below the key 1.4300 support level, putting further downside into focus.

1️⃣ Breakdown Below Support:

The 1.4300 level, which previously acted as strong support, has now failed.
Sustained trading below this level could accelerate bearish momentum.

2️⃣ Moving Averages Tilting Bearish:

50-day SMA (1.4331): Recently breached, acting as newfound resistance.
200-day SMA (1.3872): Remains a key long-term support zone.

3️⃣ Momentum Indicators Reflect Weakness:

RSI: 42.68, signaling bearish momentum but not yet oversold.
MACD: Sliding further into negative territory, confirming downside bias.

What to Watch:

If price remains below 1.4300, downside targets include 1.4200, followed by the 1.4000 handle.

A recovery back above 1.4300 could neutralize short-term downside pressure.

Bearish momentum is building, but a potential oversold bounce could emerge if selling extends too aggressively.

USD/CAD is at risk of deeper losses as support turns into resistance—further declines look likely unless bulls reclaim control.

-MW