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      USD/CAD continues its strong downtrend

      Adam

      Forex

      Summary:

      The USD/CAD pair continues its strong downtrend, trading around 1.3855. The weakening of the USD and expectations of a rate cut by the Bank of Canada (BoC) are putting downward pressure on the pair.

      Sell

      USDCAD

      End Time
      CLOSED

      1.38200

      Entry Price

      1.37500

      TP

      1.38600

      SL

      1.37700 0.00000 0.00%

      400

      Points

      Loss

      1.37500

      TP

      1.38603

      CLOSING

      1.38200

      Entry Price

      1.38600

      SL

      Overview

      The USD/CAD pair is currently trading around 1.3855, down sharply from a high of 1.4543 in January 2025. The weakening USD and expectations of a BoC rate cut are putting downward pressure on the pair. USD/CAD could continue its downtrend if it remains below the 1.3800 support level without a clear reversal signal.

      Market psychology

      Current market sentiment reflects concerns about the global economic outlook and the divergence in monetary policy between the US and Canada. Investors are looking for safe-haven assets, which could support the CAD in the short term.

      Technical analysis 

      USD/CAD continues its strong downtrend_1
      Bollinger Bands (20,0,2): Price is trading near the lower line of the Bollinger Band, indicating a potential continuation of the downtrend if it breaks the support level of 1.3800.​
      Ichimoku indicator (9,26,52): Price has fallen below the Ichimoku cloud, indicating a strong downtrend.
      Stochastic Oscillator (5,3,3): This indicator is in the oversold zone, indicating a possible short-term reversal, but not strong enough to confirm an uptrend.
      Support and resistance levels:
      Support: 1.3800 (next support level).​
      Resistance: 1.3855 (nearest resistance level).

      Trading Recommendations

      Entry: Open a sell order when price confirms a break of the support level 1.3820.​
      Take Profit: 1.3750 (next support level).
      Stop Loss: 1.3860 (nearest resistance level)
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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