USD/CAD Price Analysis: Drops below 1.41 on pennant breakdown

USD/CAD faced rejection near 1.4140 early Monday and is currently sitting in the red around 1.4090.
A pennant breakdown seen in the 4H chart suggests scope for deeper losses.

Omkar Godbole FXStreet Contributor

USD/CAD is losing altitude in Asia, having suffered a pennant breakdown on Monday.

The pair is currently trading in the red near 1.4090, having faced rejection above 1.4140 early Tuesday.

he currency pair dived out of a contracting triangle or a pennant pattern almost 24 hours ago, signaling a continuation of the pullback from the March 23 high of 1.4547 and opening the doors for a re-test of 1.3921 (March 27 low).

Monday's bearish outside bar candle also indicates the path of least resistance is to the downside.

A 4-hour close above 1.4250 is needed to revive the bullish view. Multiple 4-hour candles have failed to establish a foothold above that level over the last seven days.

4-hour chart

Trend: Bearish

Technical levels

USD/CAD

Overview
Today last price	1.4092
Today Daily Change	-0.0018
Today Daily Change %	-0.13
Today daily open	1.411

Trends
Daily SMA20	1.4143
Daily SMA50	1.3641
Daily SMA100	1.3394
Daily SMA200	1.3298

Levels
Previous Daily High	1.4262
Previous Daily Low	1.4082
Previous Weekly High	1.4349
Previous Weekly Low	1.3983
Previous Monthly High	1.4668
Previous Monthly Low	1.3315
Daily Fibonacci 38.2%	1.4151
Daily Fibonacci 61.8%	1.4193
Daily Pivot Point S1	1.4041
Daily Pivot Point S2	1.3972
Daily Pivot Point S3	1.3862
Daily Pivot Point R1	1.4221
Daily Pivot Point R2	1.4331
Daily Pivot Point R3	1.44

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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