The USDCAD currency pair has been exhibiting a downtrend from the 1.3654 level, with a recent bounce observed from the low of 1.3177. This rebound is likely a period of consolidation within the prevailing downtrend.
Currently, the price remains below a falling trend line on the 4-hour chart, reaffirming the downtrend. As long as the price remains below this trend line, it is reasonable to anticipate a continuation of the downside move. Traders should monitor the price action around the 1.3177 support level, as a breakdown below this level could trigger a further downside move towards the next target at 1.3100.
On the upside, a breakout above the trend line resistance would suggest that the downside move has potentially completed at 1.3177. In such a scenario, the pair could encounter resistance at 1.3387, followed by the key level of 1.3461. These levels should be closely monitored by traders for potential reversals or increased buying pressure.
In summary, USDCAD remains in a downtrend from 1.3654, and the recent bounce from 1.3177 is likely a period of consolidation within this downtrend. With the price below the falling trend line, a breakdown below 1.3177 could trigger further downside movement towards 1.3100. Conversely, a breakout above the trend line resistance would indicate a potential end to the downside move, with resistance levels at 1.3387 and 1.3461. Traders should closely monitor price action and key levels while considering both technical and fundamental factors.
