The USDCAD has extended to a fresh low for the day and its lowest level since June 17. In the process, the pair has broken below the swing lows from July 17 and July 20 at 1.4003, with today's low reaching 1.3993. Despite the break, the price remains above the 38.2% retracement of the rally from the May 1 low at 1.35508 to the June triple-top high at 1.42473, which comes in near 1.3981. The latest leg lower began after the corrective rebound from the June 20 low stalled at the former floor between 1.4130 and 1.4148. From a technical perspective, the break below 1.4000 is an important step for sellers, but the next test comes near the 38.2% retracement level.