The USDCAD currency pair has experienced continued downward momentum, extending its decline from the high of 1.3654 to as low as 1.3271. Currently, the pair is hovering near the support level at 1.3260, which has acted as a crucial barrier for further downside movement. Traders are closely monitoring this level as a potential catalyst for an extended decline in the pair.
Should USDCAD break below the key support level at 1.3260, it could trigger additional selling pressure and pave the way for a further downside move towards the next support level at 1.3225. A successful breakdown below this level would signal a continuation of the bearish sentiment, potentially leading to a deeper decline in the pair.
On the other hand, the key resistance level at 1.3387 is serving as a crucial hurdle for any potential upside recovery in USDCAD. Only a decisive break above this resistance level would provide a glimmer of hope for the bulls, potentially opening the door for a recovery towards the next resistance level at 1.3461. Further gains could then target the previous high at 1.3654.
Traders are advised to closely monitor price action around the key support and resistance levels mentioned above, as they are critical in determining the short-term direction of USDCAD. A breakdown below 1.3260 would suggest further downside potential, while a breakout above 1.3387 would indicate a possible shift in market sentiment.
In summary, the USDCAD currency pair has extended its downward move, testing the key support level at 1.3260. A breakdown below this level could lead to further downside momentum, targeting the next support at 1.3225. Conversely, a breakout above the key resistance level at 1.3387 would suggest a potential recovery, with resistance levels at 1.3461 and 1.3654. Traders should closely monitor price action and adjust their strategies accordingly to navigate potential trading opportunities.
