USD/CAD is holding above 1.4000 after consolidating a sharp drop from its June high of 1.4248. Continuum Economics analyst PakLai Ng says negative daily and weekly studies still point lower, with a break of 1.4000 opening the way toward 1.3980.
The Canadian dollar pair steadied above 1.4000 as it consolidates recent sharp losses from the 1.4248 June high. It is holding around the 1.4000 congestion level.
Downside pressure persists. Negative daily and weekly studies keep the pressure lower, according to Continuum Economics. A break of 1.4000 would open a deeper pullback that retraces the May/June rally toward strong support at 1.3980, the 38.2% Fibonacci retracement of that advance.
Below there, the March high at 1.3965 and the January high at 1.3930 mark the next support levels.
On the upside, resistance has been lowered to 1.4050, a congestion area. A push above it would leave room for a stronger corrective bounce toward 1.4100/15, which should cap any recovery.
Source: Continuum Economics
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