USDCAD has clearly entered a bearish phase, but what’s pushing the currency pair lower? Many analysts are predicting even more downside for the pair which currently trades persistently below that key 1.40 level, confirming its overall bearish trend. This advance comes after a recovery that started in June, which now seems to be coming to an end.
Market commentators have been stressing the significance of the 1.4139 level for USDCAD. They posit that crossing this threshold could help inform long-term trends in the future. At the time of this writing, current trading activity has pushed USDCAD below the lower trend-line support of a developing base channel. Bearish sentiment for the currency pair deepens with this movement.
The recent drop appears to be consistent with a third wave of action in the long-term bearish trend. As analysts testify, this downturn is different. It does not hew to a wave C pattern that usually retreats from prior highs, indicating deeper, more persistent bearish undertow rather than a mere rally to catch one’s breath.
USDCAD continues to have difficulty holding above the key psychological 1.40 level. Experts say that this pair is still headed down. Sentiment is extremely bearish on the USDCAD. They ought to prepare for more downside in the days, or even weeks, ahead.