USD/CAD rebounds from 1.3970 support after sharp decline

USD/CAD has recovered from yesterday's sharp decline, bouncing from key support at 1.3968-1.3975 after falling through multiple technical levels. The pair's aggressive selloff found floor at this crucial zone, which previously served as resistance in early October. Technical indicators show buyers attempting to stabilize the decline, with the first bullish signal being a reclaim of the 61.8% Fibonacci retracement at 1.39837. This level now acts as immediate resistance, and a decisive break above would confirm buyer control returning to the market. The support zone between 1.3968 and 1.3975 remains critical for maintaining any bullish bias. Traders are closely watching whether USD/CAD can sustain above this floor and build momentum for a recovery rally, or if sellers will resume pressure for a deeper correction toward 1.3900.