USDCAD Weekly Analysis – July 8, 2023

The USDCAD currency pair has been entrenched in a long-term downtrend, originating from 1.3977. This downtrend suggests the likelihood of further declines in the coming weeks. Traders with a bearish outlook anticipate the next target to be at 1.2900, followed by 1.2700. These levels may act as significant psychological and technical support points, potentially influencing the behavior of market participants.

It is important to note that within a downtrend, there may be periods of temporary consolidation or retracement. During such phases, it is crucial for traders to monitor key resistance levels to assess the strength of the downtrend.

In the case of USDCAD, the resistance level to watch is at 1.3660. A break above this level could potentially trigger another upward move, leading the pair towards the previous high at 1.3977. Such a breakout would warrant a reevaluation of the bearish outlook.

However, it is essential to consider the overall context of the long-term downtrend. A sustained move above 1.3660 would be required to indicate a potential reversal or a change in market dynamics.

In summary, the USDCAD pair continues to exhibit a long-term downtrend from 1.3977. The next target for the pair is projected to be at 1.2900, followed by 1.2700. Resistance at 1.3660 should be closely monitored, as a break above this level could trigger a potential retracement towards the previous high at 1.3977. Traders should stay informed and adapt their trading strategies to changing market conditions.