The price of USDCAD could continue to trade lower in line with the current USD weakness.

USDCAD Analysis

Intraday bias in USD/CAD remains neutral for consolidation above 1.3405 temporary low. Upside of recovery should be limited by 1.3563 resistance to bring another fall. Break of 1.3405 will resume the decline from 1.3860, as the third leg of the corrective pattern from 1.3976, to 1.3224/61 support zone. Strong support should be seen around there to bring rebound.

OPEC cut oil output in a shock move, which creates more demand for the commodity. If the market demand for Oil decreases, OPEC will cut production, meaning theres less Oil and higher prices. The higher prices of Oil have caused uncertainty in the market, as this could lead to global inflation rising again. Central Banks will not want to see this and may have to use the tools at their disposal to combat rising inflation rates.

USDCAD is trading within a larger time frame range between the highs of 1.3850 and the lows of 1.3250. Price has recently broken down through supporting lows at 1.3500 and retested it on the other side as resistance. If the price fails to trade above this level, the bearish momentum could continue. Sellers may look to be targeting the range lows of 1.3250. The daily time frame shows price closing back within the previous days range, this could be a bearish sign for price, as it shows a lack of buying intent.

USDCAD

The price on the chart has traded through multiple technical levels and some observations included:

• Price is trading within a range at 1.3850 and 1.3250.

• Price has recently found resistance at 1.3500.

• The daily candle shows a lack of intent from buyers.

• Sellers could look to target the recent swing lows