USD/CAD Price Prediction: Starting to decline again, possible resumption of downtrend
|- USD/CAD is declining again, possibly in a resumption of its prior downtrend.
- The pair could be descending in a large Measured Move pattern with bearish targets.
USD/CAD has started to creep lower again. The move comes after a three-day pullback from the September 25 low (blue rectangle on chart).
USD/CAD Daily Chart
It is possible that the correction has now run its course and, given the medium-term trend is probably bearish – and according to technical analysis theory “the trend is your friend” – the pair might be resuming its medium-term downtrend.
A move below 1.3457 (September 26 low) would confirm a resumption of the downtrend, probably to at least the 1.3420 low of September 25. A close below that, would provide bearish confirmation of more downside to the range lows – a zone beginning at around 1.3222 and ending at 1.3106.
USD/CAD appears to have formed a large zig-zag pattern known as a Measured Move after peaking on August 5. If so, then it augurs bearish for the pair as the downside target for the last wave C of the pattern is 1.3326 at a minimum, the 61.8% Fibonacci extension of wave A.
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