USD/CAD Daily Forex Analysis
As part of our Daily Forex Analysis, we delve into the USD/CAD pair that remains within a neutral intraday outlook, locked within the bounds of sideways consolidation beginning from 1.3095. The broader sentiment persists as bearish, projecting further declines as long as the resistance at 1.3389 maintains. A break beneath 1.3095 would reignite the larger downtrend, setting sights on the 61.8% projection from 1.3657 to 1.3119 from 1.3390 at 1.3058. Conversely, a decisive breach of the 1.3390 resistance could indicate a short-term trend reversal, shifting the overall outlook to bullish.
Looking at the more comprehensive context, USD/CAD’s price movements since 1.3980 are interpreted as a corrective phase to the uptrend originating from the 2021 low of 1.2009. Even so, with the resistance at 1.3390 still in place, a deeper drop is anticipated. This could potentially extend the decline from the 61.8% retracement of 1.2009 to 1.3980 at 1.2762. If a breach of 1.3390 occurs, it would suggest the completion of the correction, thereby inciting a more substantial rally back toward retesting 1.3980.
Key points:
- The Daily Forex Analysis reveals a neutral intraday bias for the USD/CAD pair.
- There is potential for further decline with the intact resistance at 1.3389.
- A significant breakthrough this resistance could turn the short-term outlook bullish.
