$CAD: Technical picture points to further downside

Carol Harmer Charmer Trading

On the recent rebound, price reached the 61.8% Fibonacci retracement, a level that often signals the end of corrective moves.

Friday’s sharp decline reinforces the idea that the market may be transitioning back into trend continuation.

More importantly, the lows from June 16th, 2025 have now been taken out, suggesting the structure forming is bearish continuation rather than a simple pullback.

Key downside level to watch

If 1.3450 breaks, the next viable medium-term target sits around 1.3175.

Today’s key levels

Daily Pivot: 1.3573 (price currently above)

Resistance levels:

R1: 1.3621
R2: 1.3656
R3: 1.3705

The 23.6% Fibonacci retracement sits at 1.3653, creating a confluence resistance zone between 1.3621–1.3650.

This area could attract sellers and support a “sell the rallies” scenario.

Downside levels to watch

1.3570
1.3540
1.3490

Some short covering may appear here, but a break below 1.3480 could trigger another wave of selling pressure.

For now, the market appears to favour selling strength rather than buying dips.

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

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