USD/CAD: Sideways Movement Signals Possible Downside

After a bearish move, the USD/CAD pair staged a pullback, forming a long-tailed candle on the daily timeframe that points to a potential retest of the zone above the 1.4200 level. Currently, the market is trading sideways, positioned just above the previous day's low.

If the price breaks and closes below this low, it may attempt to retest the support zone beneath. However, with price action still contained within the weekly range, continued oscillation between the upper and lower boundaries remains possible. A move to the downside is anticipated if the pair holds below the upward trendline, with the next target being the support zone around 1.42615