USD/CAD is consolidating after turning up from its 1.4115 low, but Continuum Economics analyst PakLai Ng flags room for a deeper pullback. Negative daily studies point to fresh selling pressure, with support layered down toward the 1.3965/1.3930 area.
USD/CAD has turned up in range from the 1.4115 low as prices consolidate losses from the 1.4248 June high, according to Continuum Economics. Yet the near-term bias leans lower rather than higher.
Negative studies point to more downside
Continuum Economics analyst PakLai Ng notes that negative daily studies suggest fresh selling pressure later, leaving room for a deeper pullback to retrace gains from the 1.3550 May low.
Because of this, the levels below the market matter most. A move lower through the 1.4100 level would extend losses to the 1.4050/1.4000 congestion area, then toward the strong support at 1.3965/1.3930, the March and January highs.
Resistance caps the upside near 1.4200
On the way up, resistance remains at the 1.4200 congestion, which is expected to cap the market and sustain the pullback from the 1.4248 June high. Further overhead, the 1.4290 level marks the 61.8% Fibonacci retracement of the 2025-2026 fall.
Source: Continuum Economics (snippet-based)
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