The pair continues declining moderately amid the strengthening of USD against a basket of world currencies. USD Index is currently trading at 100.100, which led to a decrease in the pair to the current level of 1.4000.

The pair is in a correction, a fall is possible.

On the 4-hour chart, the third wave of the higher level (3) develops, within which the first wave 1 of (3) formed. Now, a downward correction is developing as the second wave 2 of (3), within which the wave of the lower level a of 2 is forming. If the assumption is correct, the pair will fall to the levels of 1.3788–1.3598. In this scenario, critical stop loss level is 1.4260.

Today, during the Asian session, the USD/CAD pair is falling, renewing local lows from March 31 and continuing to develop a “bearish” impulse formed the day before. The pressure on USD is exerted by technical factors, as well as the growth of alarming fears about a sharp slowdown in the US economy with a record increase in unemployment. Against this background, CAD does not look particularly attractive but investors are currently in a search and trying to diversify their portfolio.

This week, the dynamics of the USD/CAD pair is ambiguous. After the losses of the previous week, USD recovers amid a decline in interest in risk but the information field is oversaturated, which often forms surges in volatility.