Technical analysis of USD/CAD 05/02/2025

USD/CAD, Daily Timeframe: Price is trading within a descending channel, staying below key Fibonacci levels

After forming a peak around 1.4875, USDCAD has been consistently declining, remaining inside a clearly defined descending channel (marked in red).

The pair has broken below the 61.8% Fibonacci retracement level (1.3932) and is trading below the 200-day Simple Moving Average (SMA), confirming bearish dominance.

The RSI (14) stands at 38.78 — indicating weakness but not yet oversold, which suggests there is still room for further downside.

Key levels:

Resistance:

1.3932 — the 61.8% Fibonacci retracement and a significant resistance area.

1.4083 — the 50% Fibonacci level and a previous consolidation zone.

Support:

1.3428 — the 100% Fibonacci retracement and a major support area.

A break below this could open the path to 1.3400 or lower.

Conclusion:

The overall trend remains bearish. As long as the price stays below 1.3932 and the 200-day SMA, the downside bias is favored. Only a breakout above 1.4083 could signal a potential trend reversal.

Created by Joshua Hayn