The USDCAD extended to a new high for the year on Friday following the weaker-than-expected Canadian jobs report. However, the breakout could only stretch about 7 pips above the previous yearly high near 1.4292 before reversing lower.The buyers had their shot. They could not keep the break going.By Friday’s close, the price had rotated lower. Selling continued on Monday until the pair reached its rising 100- and 200-hour moving averages—the blue and green lines on the chart. Buyers leaned against those levels and pushed the price higher.That rebound stalled near Monday’s closing level and below the previous yearly high at 1.4292. Today, sellers have taken back control, pushing the pair lower in a more trend-like move. The USDCAD is down about 0.48%, making the Canadian dollar the strongest performer against the US dollar.Sellers reach the next downside hurdleThe decline has reached the top of a swing area between 1.41922 and 1.4204. That area is defined by swing highs and lows going back to September 29, highlighted by the red numbered circles on the chart.So far, the price has stalled near the upper boundary at 1.4204.Sellers have secured a victory with the move below the hourly moving averages. To increase their control, however, they need to break below this swing area and stay below it. That would open the door for further downside momentum toward the next swing area between 1.41297 and 1.4153.Can buyers defend support again?If buyers hold this area for a fourth consecutive test, the focus shifts toward a rebound to the 100- and 200-hour moving averages near 1.4250.Those moving averages become the next upside hurdle. Getting above—and staying above—them would weaken the sellers’ control and bring the yearly high near 1.4298 back into focus.For now, sellers are enjoying the victory today, but they still have work to do. The 1.41922–1.4204 swing area is where their next test begins.The trading lessonA break below the moving averages shifts the short-term bias, but the next support area still matters. Sellers need to see follow-through. Buyers need to see support hold.Use the swing area to define risk and judge control. Hold support, and buyers have a reason to lean against it. Break below and stay below, and sellers earn another victory.In the video above, I walk through the failed breakout, today’s move lower, and the levels that will help determine whether sellers can keep the pressure on. This article was written by Greg Michalowski at investinglive.com.