The USDCAD currency pair has recently broken below a key support level at 1.3225, signaling a shift in market sentiment and indicating that the pair is now in a long-term downtrend from 1.3977. This break below support suggests that further declines may be on the horizon for the pair over the next several weeks.
Traders are now closely monitoring the price action in USDCAD as it continues its downward trajectory. The next target for the pair is seen at 1.2900, followed by 1.2700. These levels represent potential areas where traders may anticipate support or consider taking profits on short positions.
On the upside, resistance is now seen at 1.3660. Only a break above this level would signal a potential shift in the downtrend and could trigger another rise towards the previous high at 1.3977. However, such a scenario would require a significant change in market dynamics and sentiment.
To summarize, USDCAD has broken below a key support level at 1.3225, indicating that the pair is now in a long-term downtrend from 1.3977. Further decline is expected, with potential targets at 1.2900 and 1.2700. Resistance is seen at 1.3660, and a break above this level would be required to suggest a potential reversal in the downtrend. Traders should exercise caution, employ risk management techniques, and stay informed about market developments when trading USDCAD.