Photo by Michelle Spollen on Unsplash

USDCAD is still in a downtrend, and that view remains unchanged. The decline from the 2025 highs looks impulsive, while the bounce from June appears to be a wave four consolidation. Resistance is ideally at 1.3870–1.3900,  from where we can see some nice turn south, maybe trying to complete a fourth wave rally. Ideally, fifth wave down is coming still this month.

We talked about USDCAD on June 19, where we mentioned and highlighted a stepping into a new higher degree correction that can take some time, and it can be in three waves.

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USDCAD 4H Chart From June 19

As you can see today on August 04, USDCAD can be finishing a projected three-wave higher degree ABC correction in wave (4), right at the mentioned resistance area, so soon we may see a bearish continuation within wave (5).

(Click on image to enlarge)

USDCAD 4H Chart From August 04

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