USDCAD has been trading sideways for the past two weeks between 1.3740 and 1.3600, unable to break the short-term downtrend from April’s peak of 1.3844. The technical signals are currently uncertain, with the RSI hovering around 50 and the stochastic oscillator showing a flat trajectory.
A close above the 50-day simple moving average at 1.3668 could push the price towards the upper range at 1.3740 and potentially reach the key resistance line at 1.3775. Beyond that, the pair may target 1.3844 and aim for the psychological level of 1.3900, with a break opening the door for the 2022 peak of 1.3976.
On the downside, initial support is seen around 1.3622, with further support at 1.3600, the 200-day SMA, and the crucial support trendline at 1.3578. If these levels are breached, the pair could decline towards 1.3525 and potentially reach 1.3450.
In conclusion, the short-term outlook for USDCAD remains neutral. The market could see movement above 1.3775 or below 1.3578 influencing further price action.