• USD/CAD is declining again, possibly in a resumption of its prior downtrend. 
• The pair could be descending in a large Measured Move pattern with bearish targets. 

USD/CAD has started to creep lower again. The move comes after a three-day pullback from the September 25 low (blue rectangle on chart). 

USD/CAD Daily Chart 

It is possible that the correction has now run its course and, given the medium-term trend is probably bearish – and according to technical analysis theory “the trend is your friend” – the pair might be resuming its medium-term downtrend. 

A move below 1.3457 (September 26 low) would confirm a resumption of the downtrend, probably to at least the 1.3420 low of September 25. A close below that, would provide bearish confirmation of more downside to the range lows – a zone beginning at around 1.3222 and ending at 1.3106.

USD/CAD appears to have formed a large zig-zag pattern known as a Measured Move after peaking on August 5. If so, then it augurs bearish for the pair as the downside target for the last wave C of the pattern is 1.3326 at a minimum, the 61.8% Fibonacci extension of wave A.