The USDCAD had been drifting lower since around 7:15 a.m.
ET, falling from 1.4171 to 1.4152 ahead of Canada’s hotter-than-expected CPI report
The inflation data triggered another leg lower, with the pair extending its decline to 1.4144. Earlier in the session, the pair had climbed to 1.4193 during European trading, its highest level since April 2025, before the stronger Canadian inflation data prompted traders to pare back gains and pushed the pair sharply lower. Looking at the daily chart, the latest decline is approaching a key support zone defined by the 50% retracement of the move down from the 2025 high to the 2026 low at 1.41384.
That area also aligns closely with the November 5 and 6 swing highs and the November 21 swing high near 1.4130, creating an important technical floor. It would take a break below this cluster of support to give sellers renewed hope against what has been a strong, trend-like rally since the May 1 low at 1.3549. On the 5-minute chart below, the selloff over the last hour has pushed the pair below its 100- and 200-bar moving averages.