USDCAD Daily Analysis – June 23, 2023

The USDCAD currency pair continues to adhere to the established downtrend from 1.3654, as indicated by its position below the falling trend line on the 4-hour chart. The pair remains in a bearish phase, and there is a possibility of further downside movement in the near term.

The recent bounce from 1.3138 should be viewed as a period of consolidation within the overall downtrend. This consolidation suggests that sellers are taking a breather before potentially resuming the downward momentum. Traders should be cautious about interpreting this bounce as a reversal, as the primary trend remains bearish.

Looking ahead, the next target for USDCAD is projected to be around the 1.3000 area. This level represents a significant psychological and technical support zone where buyers may step in and attempt to halt the decline. However, a break below this level could open the door for further downside potential.

To indicate a potential completion of the downtrend, USDCAD would need to break above the key resistance level at 1.3269. This level acts as a significant hurdle for bulls and should be closely monitored for any signs of a trend reversal. A sustained move above this resistance level could suggest a shift in market sentiment and potentially signal the end of the current downtrend.

In summary, USDCAD remains within a downtrend, as it remains below the falling trend line on the 4-hour chart. Further decline towards the 1.3000 area is possible, and traders should monitor key resistance at 1.3269 for any signs of a trend reversal. Stay vigilant and adapt trading strategies accordingly to navigate the evolving market conditions.