USDCAD Weekly Analysis – July 15, 2023

The USDCAD pair has experienced an extended downtrend, reaching as low as 1.3092 from the high of 1.3977. This decline indicates the continuation of the long-term bearish movement. Traders should be aware of the potential for further downside in the coming weeks.

Looking ahead, the next target for USDCAD is expected to be around the 1.2900 level, followed by the key psychological support at 1.2700. These levels represent significant price areas where buyers might step in and provide support, potentially leading to a temporary pause or consolidation in the downtrend.

However, it is important to note that the resistance level at 1.3660 remains a crucial barrier for any potential upward move. Only a convincing break above this resistance level would signal a shift in market sentiment and open the possibility for a broader recovery towards the previous high at 1.3977.

In summary, USDCAD’s long-term downtrend is expected to continue, with further decline anticipated over the coming weeks. Traders should watch for potential support levels at 1.2900 and 1.2700. However, a break above the resistance at 1.3660 would be required to suggest a change in the market’s bearish sentiment. As always, it is important to stay informed and adapt trading strategies to evolving market conditions.