USDCAD Daily Analysis – July 13, 2023

The USDCAD currency pair has continued its downward trajectory, extending its decline from 1.3386 to as low as 1.3143. The pair is currently facing a crucial support level at 1.3116, which has the potential to trigger further downside movement. If the support at 1.3116 is breached, the next target for USDCAD could be around the 1.2950 area, highlighting the prevailing bearish sentiment.

Looking forward, traders and analysts anticipate the potential for further downside in USDCAD. A breakdown below the support level at 1.3116 would signify a continuation of the bearish trend and potentially open the door for additional declines towards the 1.2950 area.

However, it is important to acknowledge that currency markets are subject to fluctuations and reversals. Immediate resistance for USDCAD is currently situated at 1.3230. Only a break above this level would indicate a potential reversal in the ongoing downtrend. Such a scenario could trigger a corrective move higher towards the previous high at 1.3386, but it would require a significant shift in market dynamics and sentiment.

In conclusion, USDCAD continues to experience downward pressure, reaching as low as 1.3143 and testing the crucial support level at 1.3116. The currency pair remains poised for potential further declines, with the next target around the 1.2950 area. Immediate resistance is located at 1.3230, 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.