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  • 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. 

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