30-mins USD/CAD: Further Drop Seems Possible

21 nov.

In recent days, USD/CAD has exhibited strong bearish momentum, reflecting a continuation of its downward trend. This momentum is further supported by the formation of a classic Death Cross, where the 20 MA crosses below the 60 MA —a widely recognized sell signal.

Following the sustained slide, the pair experienced a pullback, briefly retesting the area around 1.3980, which aligns with the 38% Fibonacci retracement level. This move suggests the possibility of short-term consolidation as market participants assess the next direction. If buyer activity increases, a further test of higher levels near 1.3985—corresponding to the 50% Fibonacci retracement—could occur.

However, should USD/CAD fail to sustain values above this critical 50% Fib level, sellers may seize the opportunity to enter positions, reinforcing the broader bearish trend. This could set the stage for another move lower, as traders align with the prevailing downward momentum and capitalize on continued selling pressure.