USDCAD Daily Analysis – July 3, 2023

USDCAD has exhibited a noteworthy development as it successfully broke above a previously dominant falling trend line on the 4-hour chart. This breakout suggests a potential shift in market dynamics, indicating that the pair is now in an uptrend from the level of 1.3116. Traders who closely monitor the price action will likely view the recent pullback from 1.3285 as a consolidation phase within the larger uptrend.

Considering the breakout and the overall market context, the outlook for USDCAD leans towards further upward movement. Traders may anticipate a continuation of the uptrend after the consolidation phase, with the next target located at 1.3387, followed by 1.3461. These levels can serve as potential resistance zones where traders might consider taking profits or adjusting their trading strategies.

To maintain a constructive view on the upward trajectory, it is essential to monitor the level of 1.3200, which currently acts as a key support level. As long as the price remains above this level, the bullish bias would likely persist. However, a break below 1.3200 could lead to a retest of the 1.3116 support, potentially indicating a pause or reversal in the uptrend.

In summary, USDCAD has broken above a falling trend line on the 4-hour chart, suggesting a potential shift towards an uptrend from 1.3116. The pullback from 1.3285 is considered a consolidation phase within the larger uptrend. Traders may look for further upside movement, targeting 1.3387 and 1.3461 as potential resistance levels. It is important to monitor the support level at 1.3200, as a break below it could signal a potential reversal or pause in the uptrend. Stay informed about market dynamics and events that may impact the pair’s trajectory to make well-informed trading decisions.