USDCAD has maintained a downward trajectory characterized by an imperfect yet moderately consistent market structure. Recently, the price has pulled back to retest a well-established bearish trendline and has now formed a notable swing high. This development signals a likely continuation of the prevailing bearish trend.
The transition into the new year was marked by prolonged consolidation, reflecting indecision in the market. However, the emergence of a three falling peaks pattern in March suggested that bearish momentum was building. This ultimately led to a clear shift in direction, confirming sellers’ dominance.
The Moving Averages, which had previously hovered within the consolidation range, now sit firmly above the price action on the daily timeframe. This reinforces the bearish narrative. The recent pullback to both the Moving Average and the resistance trendline has created a significant confluence, strengthening the case for a continued decline. The bearish trendline is derived from the sequence of the three falling peaks that initiated the broader downtrend.
USDCAD Short-Term Trend: Bearish
On the 4-hour chart, a Head and Shoulders pattern has emerged as the price revisited the bearish trendline during its recent pullback. This pattern aligns with the broader bearish structure. The Moving Averages have crossed above the candlesticks, further affirming the resumption of downward pressure. In the immediate term, price action is expected to decline toward the 1.35660 demand level.
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USDCAD Short-Term Trend: Bearish
