The USDCAD has just moved back below its 100 day moving average at 1.2625.
Recall from yesterday, the price also moved below that moving average line only to bounce back and close higher on the day.
However, after moving higher and toward its falling 100 hour moving average (higher blue line currently at 1.29956). The sellers returned and pushed lower today.
One level of interest to the downside today was the 1.2666 level (see blue numbered circles). Moving below that level, and then correcting up toward it and finding sellers (see blue numbered circles five and six), gave the sellers more confidence to push lower technically.
Now with the 100 day moving average being broken (along with the swing low going back to the December 31), sellers are making another "play". Yesterday that "play" failed. Will sellers be successful today?
On the downside, getting below the low from yesterday, and the low going back to December 8 at 1.25967 would increase the bearish bias, and open the door for further downside potential.
Taking a broader look at the daily chart below, the 100 day moving average and also corresponds with the 50% midpoint of the range since the October low. That increases levels of importance. Stay below increases the bearish bias. The next target comes in at the 61.8% retracement at 1.25453. Below that and traders will start to eye the 200 day moving average at 1.24996 (green line in the chart below).