The USDCAD currency pair made an attempt to break above the key resistance level at 1.3387 but faced selling pressure and subsequently retraced back to the 1.3265 area. Currently, the pair is finding support at the rising trend line on the 4-hour chart, which has been a significant factor in supporting the recent uptrend from 1.3116.
Traders should closely monitor the price action around the trend line support as it will play a crucial role in determining the pair’s next move. As long as the trend line support holds, the uptrend from 1.3116 could resume, and another attempt to test the 1.3387 resistance level may be on the horizon. A successful break above this resistance could pave the way for further gains.
On the downside, a breakdown below the trend line support would suggest a potential completion of the recent upside move. In such a scenario, the pair may target the 1.3200 support level initially, followed by a potential retest of the 1.3116 level.
In summary, USDCAD failed to break above the 1.3387 resistance level and retraced back to the rising trend line on the 4-hour chart. The pair’s direction will depend on the ability of the trend line support to hold. A continuation of the uptrend could lead to another attempt at the resistance level, while a breakdown below the trend line may signal a shift in sentiment. Traders should stay informed and adapt their strategies to the evolving market conditions to make informed trading decisions.