The USDCAD pair has shown persistent weakness, breaking below the previous low of 1.3138 and extending its downside move from 1.3654 to reach as low as 1.3131. The price action suggests a continuation of the downtrend, with traders closely monitoring key levels and technical patterns for potential trading opportunities.
As long as the price remains below the falling trend line on the 4-hour chart, market participants can expect further downside pressure. The next target for the pair is projected at the 1.3000 psychological support level, which may act as a significant barrier on the path of the downtrend. A breach below 1.3000 could open the door for additional declines.
On the upside, the key resistance level to watch is at 1.3269. A decisive break above this level would indicate a potential completion of the downtrend, signaling a shift in market dynamics. Such a move could lead to a short-term recovery or consolidation phase.
Traders are advised to pay close attention to price developments around the falling trend line and the aforementioned support and resistance levels. These areas will provide crucial insights into the market sentiment and the potential future direction of USDCAD.
In summary, the USDCAD pair continues its downtrend, with the price breaking below the previous low and extending the decline. As long as the price remains below the falling trend line, a further decline towards the 1.3000 support level is anticipated. However, a break above the 1.3269 resistance level could signal a potential end to the downtrend. Traders should monitor price dynamics and stay updated on fundamental factors to make informed trading decisions in the evolving USDCAD market.
