USDCAD, Bear-Flag-Formation, EXTENDED Drop Incoming!

Hello There!

Welcome to my new analysis about USDCAD on the 2-hour timeframe perspective. Since the disasterous debt ceiling agreement the U.S.-Dollar is struggling to hold strength against other currencies especially against commonwealth there is a crucial devaluing of the U.S.-Dollar against the currencies. Now this gives a more bearish fundamental short-term indication to consider as the U.S.-Dollar is sold out against the other currencies and one of them being the Canadian Dollar. Furthermore, there are strong ambitions of other nations such as the E.U. to initiate digital backed state currencies such as the Digital Euro to undermine the U.S.-Dollar world reserve currency hegemony. Such considerations play into the devaluing developments currently omnipresent with the U.S.-Dollar.

Technically there is an interesting pattern forming to consider right now. Firstly the USDCAD pair is forming this main bear-flag formation below the local horizontal resistance which gives a main indication for a major drop to follow through in the near future printing the next wave to the downside as seen in my chart. Once this bear flag has been completed there will be two target zones activated in play the first one likely to be reached with the first drop and the second one likely to be reached when the pair increases in trading volume with more retailers fleeing USD into CAD. Especially if the plans of an Digital Euro beginning in 2026 become hard facts this can lead to further bearish inclinements for pairs trading against USD such as USDCAD.

Thank you everybody for watching. It will be great when you support my idea and we move on forward together.
“Fortune sides with him who dares.”

VP

Comment:

First Bear-Flag-Target reached. ✔

Comment:

Second Bear-Flag-Target reached. ✔

Comment:

ANALYSIS UPDATE: USDCAD reached all target-zones in the schedule.

Forms a new formation on the local terms.

Comment:

ANALYSIS UPDATE: USDCAD increased with the heavy bearish momentum determinations and continued with massive bearish momentum.

USDCAD since emerging with the bearish continuation setup completion reached all of the final target zones appropriately.