USDCAD Analysis – September 19, 2023

In recent price action, the USD/CAD pair has broken below the 1.3488 support level, indicating that the previous upside move from 1.3092 to 1.3694 has likely concluded. With the price currently below the falling trend line on the 4-hour chart, it suggests a bearish sentiment in the market.

As long as the price remains below the trend line, a continuation of the downside move could be expected, with the next target potentially around the 1.3370 area.

On the upside, a breakout above the trend line resistance would suggest a consolidation phase for the downtrend from 1.3694. If such a breakout occurs, it could bring the price back up towards the 1.3550 area.

Traders should closely monitor the price’s behavior in relation to the falling trend line and be prepared to adapt their strategies accordingly. Maintaining a bearish bias while the price remains below the trend line could be prudent, but a breakout could potentially change the outlook towards a temporary consolidation period.