USD/CAD turns bearish after five-wave decline, eyeing deeper correction
USD/CAD broke below key 4-hour trendline supports and completed a five-wave decline from recent highs, signaling a potentially deeper bearish correction. A short-term recovery toward 1.4120–1.4160 may precede further selling.
The pair’s breach of important 4H trendline supports and the completion of a five-wave decline from the highs point to a shift in structure. This wave count suggests that the recent uptrend may be exhausted, opening the door to a more extended bearish correction.
A temporary bounce is possible before sellers resume control, with resistance seen in the 1.4120–1.4160 area. If that zone caps the recovery, the bearish outlook strengthens.
Traders are watching for renewed selling pressure below this level to confirm the downside move. The breakdown below trendline support adds conviction to the bearish case.
Source: FXStreet Forex News