USDCAD Breaks Trend Line: A Look at What’s Ahead

In a recent development, the USDCAD pair has broken below the rising trend line on its 4-hour chart. This move insinuates that the uptick from 1.3176, which capped at 1.3541, is now wrapped up.

Where are we headed now? A further drop down could be on the horizon in the forthcoming days, with the crosshair set on the 1.3350 region. If the pair tumbles past this level, a descent towards the 1.3290 terrain could be in play.

However, we shouldn’t overlook the immediate resistance at 1.3460. If the pair powers through this level, it could open the doors for another sprint up to challenge the 1.3541 resistance. A successful breach above this level would then suggest that the USD/CAD pair is still embodying the uptrend that began at 1.3176, subsequently setting the new target area at around 1.3600.