USD/CAD Daily Forex Analysis
In our Daily Forex Analysis for the USD/CAD pair, we anticipate a continued downward movement as long as the 1.3272 resistance remains unbreached. The current downtrend, originating from 1.3657, is poised to hit the 100% projection of 1.3864 to 1.3303 from 1.3657 at 1.3096. A clear break below this level could potentially target the 161.8% projection at 1.2749. Conversely, surpassing the resistance at 1.3272 could indicate a short-term bottoming and shift the bias back towards an upward rebound.
In the larger Daily Analysis spectrum, the price actions originating from the 1.3980 high are still considered a correction to the uptrend that began at the 2021 low of 1.2009. However, the likelihood of a trend reversal is growing due to the current decline. Regardless of the situation, if trading consistently occurs below the 38.2% retracement from 1.2009 to 1.3980 at 1.3237, it could pave the way to the 61.8% retracement at 1.2762. The risk will continue to lean towards the downside as long as the 1.3303 support-turned-resistance level holds, even in the event of a robust rebound.
USD/CAD Daily Analysis Summary
To summarize, our Daily Forex Analysis suggests a potential further decline for the USD/CAD pair, with an increasing chance of a trend reversal. A decisive break below 1.3096 could lead to an extended fall towards 1.2749, but the surpassing of 1.3272 resistance may trigger a bullish response.
Key points
- Anticipated further decline in USD/CAD with resistance at 1.3272.
- A decisive break below 1.3096 could trigger an extended decline to 1.2749.
- Despite the potential of a strong rebound, the risk remains on the downside as long as the 1.3303 resistance holds.
