USDCAD Weekly Analysis – June 4, 2023

The USDCAD currency pair has been exhibiting a period of consolidation, characterized by a sideways movement within a defined trading range. This range is currently observed between the support level at 1.3225 and the resistance level at 1.3977. Traders and investors are closely monitoring the price action within this range to assess the future direction of the pair.

The current sideways movement in USDCAD can be interpreted as a consolidation phase within the broader uptrend that originated from 1.2006. As long as the support level at 1.3225 holds, there is a likelihood that the pair will resume its upward momentum. Traders will pay close attention to any potential price action near this support level, as a break below it could indicate a shift in market sentiment and a potential completion of the uptrend.

On the upside, a breakout above the resistance level at 1.3977 would be a significant development. This breakout could open the door for further gains and potentially propel the pair towards the 1.4500 area. Traders will closely monitor price movements near the resistance level for any signs of bullish momentum that could indicate a potential upside breakout.

Key support remains at 1.3225, and a break below this level could signal a completion of the ongoing uptrend. If this occurs, the pair may find further support around the 1.2900 area. Traders should monitor price action near the support level for any signs of sustained bearish pressure.