USDCAD Falls Through Key Support as CAD Strengthens

USDCAD has declined sharply by 0.5% to 1.3990, marking it as the day's weakest USD pair following a break below crucial technical levels. The pair initially consolidated near resistance at 1.4060-1.4066 before accelerating lower through multiple support levels including the 38.2% Fibonacci retracement at 1.4043, the 200-hour moving average at 1.4037, and the 100-hour moving average at 1.4023. The selling pressure intensified after breaking the 50% retracement at 1.4013, with the pair now testing a critical swing area support. The Canadian dollar's strength reflects improved risk sentiment and stable oil prices above $71/barrel. Technical momentum remains bearish with the break of key moving averages signaling potential for further downside. Traders are eyeing the next support zone around 1.3950, while any recovery attempts would need to reclaim 1.4013 to neutralize the bearish bias.