USDCAD Weekly Analysis – May 21, 2023

The USDCAD currency pair has recently displayed resilience as it failed to break below the rising price channel on the weekly chart. This price action suggests that the pair remains in a long-term uptrend that originated from the 1.2006 level. The current consolidation phase, characterized by a trading range between 1.3225 and 1.3977, can be viewed as a period of temporary pause within the larger uptrend.

Traders are closely monitoring the price dynamics, seeking indications of a potential breakout. A decisive move above the resistance level at 1.3977 would serve as a bullish signal, suggesting the resumption of the uptrend. Should this occur, the next target for the pair would be around the 1.4500 area, capturing the attention of market participants who are eager to capitalize on further upside potential.

On the other hand, key support lies at 1.3225, which has acted as a significant level during the consolidation phase. A break below this support level would signal a potential completion of the uptrend, necessitating caution among traders. In such a scenario, the pair would likely find support around the 1.2900 level, where buyers may enter the market to defend against further downward pressure.

In summary, the USDCAD currency pair has held above the lower border of the rising price channel on the weekly chart, indicating that the long-term uptrend remains intact. The consolidation phase between 1.3225 and 1.3977 should be viewed as a temporary pause within the broader uptrend. A breakout above 1.3977 resistance would signal the resumption of the uptrend, with the next target around 1.4500. Conversely, a break below 1.3225 support would suggest the completion of the uptrend, with support expected around 1.2900. Stay informed and adapt trading strategies to seize potential opportunities in this dynamic market environment.