USDCAD Analysis – September 20, 2023

The USD/CAD currency pair has continued its downward movement from the 1.3694 level and reached as low as 1.3379. With the price still below the falling trend line on the 4-hour chart, the recent bounce from 1.3379 could be viewed as a minor consolidation phase within the overall downtrend.

In this scenario, further decline towards the 1.3300 level remains possible. It’s important to monitor the price’s behavior in relation to the trend line and key support levels.

On the upside, a breakout above the trend line resistance would indicate that a corrective consolidation phase for the downtrend is actively occurring. In such a case, the subsequent upward movement could potentially bring the price back towards the 1.3550 area.

Traders should closely watch the price’s dynamics, paying attention to the trend line and key support and resistance levels. Being prepared to adjust trading strategies based on potential breakouts or further declines is advised.