USDCAD Daily Analysis – July 12, 2023

The USDCAD currency pair has been on a sustained downward trajectory, extending its decline from 1.3386 to a recent low of 1.3199. This drop has been accompanied by a break below the key support level at 1.3202, indicating further potential for downside movement. With the next target set at the 1.3116 support level, the US dollar is expected to face additional selling pressure against the Canadian dollar.

Looking ahead, market participants anticipate a continuation of the downward move in USDCAD. The next target of 1.3116 represents a significant support level and could attract further selling interest. If the pair manages to break below this support level, it would signal a further intensification of the downtrend and potentially open the door for additional declines.

However, it is important to acknowledge that currency markets are subject to fluctuations and reversals. Immediate resistance for USDCAD is currently situated at 1.3265. Only a break above this level would indicate a potential reversal in the ongoing downtrend. Such a scenario could lead to a relief rally for the US dollar, but it would require a substantial shift in market dynamics and sentiment.

In conclusion, USDCAD has extended its downward move, breaking below the 1.3202 support level. The currency pair is expected to face further declines, with the next target set at the 1.3116 support level. Immediate resistance is situated at 1.3265, and only a break above this level would suggest a potential reversal in the current downtrend. Traders should closely monitor these support and resistance levels, as well as key market factors, to gain insights into the future movements of USDCAD.