USDCAD Daily Analysis – June 20, 2023

The USDCAD currency pair has been in a persistent downtrend, remaining below a falling trend line on the 4-hour chart. This trend line resistance has been a significant level that has prevented the pair from reversing its downward trajectory. As long as the trend line resistance holds, the recent bounce from 1.3177 is likely to be viewed as a period of consolidation within the ongoing downtrend.

Traders should be cautious of potential further declines in the pair after the consolidation phase. The next target to monitor is around the 1.3100 area, which could serve as a key support level. A break below this level would suggest a continuation of the downtrend, potentially opening the door for further downside movement.

In terms of immediate resistance, traders should pay attention to the 1.3250 level. A breakout above this level would indicate a potential retracement towards the trend line. However, it’s important to note that a significant shift in the trend would require a break above the trend line resistance.

To summarize, USDCAD remains in a downtrend, staying below a falling trend line on the 4-hour chart. The bounce from 1.3177 is viewed as a consolidation phase within the ongoing downtrend. Further decline is possible, with the next target around 1.3100. Immediate resistance lies at 1.3250, with a break above the trend line resistance needed to signal a potential trend reversal. Traders should exercise caution, employ appropriate risk management, and consider a comprehensive analysis of technical and fundamental factors before making trading decisions.