**BREAKING: USD/CAD Extends Decline Below Key Technical Level**
The USD/CAD currency pair has fallen to approximately 1.3820 during Thursday’s Asian trading session, marking the second consecutive day of losses. The pair broke below its nine-day exponential moving average and dropped near 1.3850 before extending declines further.
Technical analysts note the pair remains trapped within a descending channel pattern, reinforcing bearish momentum for the Canadian dollar strengthening against the US dollar. This breakdown below the nine-day EMA represents a significant short-term technical deterioration that could accelerate selling pressure.
Forex traders and Canadian dollar-exposed portfolios should monitor whether the pair finds support at current levels or continues its descent within the established downward channel. The bearish technical setup suggests potential for further USD weakness against the loonie in near-term trading.
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FXnCO Insight
** Traders should watch for a potential test of the descending channel’s lower boundary, with stops recommended above the nine-day EMA for short positions targeting further downside to 1.3800 and below.
Source: FXStreet