BREAKS BELOW 1.3950 AS BEARISH BIAS PREVAILS
BREAKS BELOW 1.3950 AS BEARISH BIAS PREVAILS
The USD/CAD pair has broken below the 1.3950 level, indicating a prevailing bearish trend.
Technical analysis reveals that the pair is moving lower within a descending channel, characterized by two parallel trendlines connecting lower highs and lower lows.
This pattern suggests a continuation of decreasing prices .
Recent daily and weekly charts show strong bearish engulfing patterns, signaling a shift in market sentiment.
A key reversal week further supports the assessment that the USD has peaked at 1.4795, reinforcing the bearish outlook for USD/CAD .
The US Dollar is under pressure due to softer economic data and dovish comments from Federal Reserve officials.
These factors have led to expectations of a slower pace of interest rate hikes, diminishing the USD's appeal and contributing to the downward movement of USD/CAD .
Support to CAD
Canada's retail sales rose by 0.4% month-over-month in September, aligning with expectations.
This positive economic data supports the Canadian Dollar, adding to the bearish pressure on the USD/CAD pair .
