The USDCAD currency pair has displayed a resilient uptrend, remaining within a rising price channel on the weekly chart. This upward movement has been in play since the pair found support at 1.2006, indicating the dominance of bullish sentiment in the market.
Currently, the price is undergoing a sideways consolidation phase, trading within a range between 1.3225 support and 1.3977 resistance. This consolidation can be seen as a temporary pause or a period of price consolidation before the uptrend resumes.
As long as the 1.3225 support level remains intact, traders can expect the uptrend to continue. A breakout above the 1.3977 resistance level would provide confirmation of the bullish momentum and open up the possibility of further gains, with the next target set at the 1.4500 area.
It is important to monitor the key support level at 1.3225. A decisive break below this level could suggest a potential completion of the uptrend, signaling a shift in market sentiment. In such a scenario, the pair may find support around the 1.2900 level.
In conclusion, the USDCAD pair maintains its upward trajectory within a rising price channel. The current consolidation phase between 1.3225 and 1.3977 can be seen as a temporary pause in the uptrend. Traders should watch for a breakout above the 1.3977 resistance level to confirm the resumption of the uptrend, with a target at 1.4500. However, a break below the key support level at 1.3225 could suggest a completion of the uptrend and lead to support around 1.2900. Staying informed and practicing prudent risk management are essential for navigating the USDCAD pair during this consolidation phase.