USDCAD Analysis – May 9, 2023

USDCAD has been experiencing a consolidation phase for the downtrend from 1.3667, after rebounding from the 1.3314 level, where it has found support. In the near term, a range trading between 1.3314 and 1.3415 can be expected for the currency pair.

If the resistance level at 1.3415 continues to hold, then the downtrend could be expected to resume, with the next target being 1.3200. On the other hand, if USDCAD manages to break above the resistance at 1.3415, then further upside movement towards the upper border of the falling price channel on the 4-hour chart could be seen.

It is important to note that the pair has found support at the key level of 1.3300, indicating that the downtrend could be weakening. However, further confirmation is needed before considering a reversal of the trend. Therefore, traders should closely monitor the levels of 1.3300 and 1.3415 for any potential breakout.