Canada CPI USDCAD moved lower on Monday after hotter-than-expected inflation data pushed the pair to a fresh low for the day.
The pair had already been easing before the data. It slipped from 1.4171 at about 7:15 a.m. ET to 1.4152 ahead of the report. After the release, USDCAD extended the drop to 1.4144.
Earlier in the session, the pair had climbed to 1.4193 in European trading. That marked its highest level since April 2025. However, the stronger Canadian CPI data led traders to cut back those gains and drove the pair sharply lower.
Canada CPI USDCAD Tests Support
On the daily chart, the latest fall moved close to a key support area. That zone sits at the 50% retracement of the decline from the 2025 high to the 2026 low at 1.41384. It also lines up with the November 5 and 6 swing highs and the November 21 swing high near 1.4130.
Therefore, traders now have a clear area to watch. A break below that support cluster would give sellers more control. Until then, the broader rally from the May 1 low at 1.3549 remains in place.
Short-Term Charts Show More Pressure
On the 5-minute chart, the selloff in the last hour pushed the pair under its 100-bar and 200-bar moving averages. Since the June 18 low, USDCAD had traded mostly above those levels. As a result, the latest move points to weaker near-term momentum.
The pair also broke below those moving averages, then retested them as resistance before turning lower again. That pattern added to the bearish tone in short-term trading.
So far, the decline has found support at the 50% retracement of the rally from the June 18 low at 1.41427. If the pair falls below that mark and then breaks the 1.4130 support zone, the move could open the way for a deeper pullback.
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