Dollar-CAD Weakens After Technical Breakdown

USDCAD is moving lower from the 1.3930 resistance and has also broken below the trendline support from the March lows, which suggests a reversal is underway. The decline looks like it is unfolding in impulsive fashion, and it likely suggests there is more weakness ahead. However, after a three-wave bounce, we would expect continuation lower within a higher degree A-B-C correction. 

But this does not mean the larger trend has turned bearish, as the pair is likely still trading within a broader triangle. Ideally, we are now in wave D, which could push price down toward the 1.3670 to 1.3600 area, after subwave B rally. Keep in mind that before any larger trends resumes and before the market can retest the February 2026 lows, we still need all A-B-C-D-E legs of the triangle to complete, as seen on the daily chart.