The USDCAD has been staying within a trading spectrum, maneuvering sideways between 1.3414 and 1.3541. Notably, USDCAD recently undertook a failed bid to breach the 1.3541 resistance, resulting in a pullback to the 1.3465 level.
As the market evolves, it’s plausible to envisage another decline to test the 1.3414 support in the forthcoming days. Should this support be broken, it would act as a confirmation that the upside from 1.3176 has now completely topped at 1.3541. Consequently, the pair might then set sights on the next support level at 1.3343, with 1.3300 standing as a further fallback point.
However, the currency pair still has the potential for a rebound if it can break out above 1.3541 resistance level. Such a movement would signal the resumption of the upward movement, turning market attention towards the next target situated in the 1.3600 area.