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The USD/CAD pair has extended its decline from a four-month high near 1.3965, driven by profit-taking and renewed concerns over potential de-escalation in U.S.-Iran tensions. Traders are capitalizing on the pullback, with sellers dominating the market for the second consecutive day. The pair's retreat reflects broader pressure on the U.S. dollar amid geopolitical risks and mixed economic data, which have weakened demand for the greenback. For traders, this development highlights the dollar's vulnerability to geopolitical shifts and the importance of monitoring key support levels. The next critical support for USD/CAD is at 1.3800, and a break below this level could open the door for further declines toward 1.3600. Market participants should watch for updates on Iran-related developments and U.S. economic indicators to gauge the pair's near-term trajectory.
