The price of the USDCAD has moved to the lowest level since November 10th today, and in the process moved below the 200 day MA at 1.24984 (green overlay line).
The price also fell below a swing area on the 4-hour chart above between 1.2485 and 1.2497. The low price reached 1.2452 before bouncing back higher.
That move up ended up retesting the 200 day MA. The corrective high reached 1.2502 - 4 pips above the key MA level - but has since backed off. THe current price trade at 1.2487.
Breaking back below the 200 day moving average is a bearish move. Sellers are making a play. However, the sellers need to keep the price below that level to keep that particular bearish break intact.
The 4 pip move above is a worry, but did not last long. So sellers are holding onto control against that level. The next downside target area comes in at 1.2427 to 1.2432. Move below it, and the door opened for other swing lows from the extremes in October and early November 2021.