Daily Forex Analysis – USD/CAD
The intraday sentiment surrounding the USD/CAD currency pair continues to hover in neutral territory as the consolidation phase, which began at 1.3788, shows persistence. Though a deeper retracement isn’t off the table, the bullish narrative remains dominant, provided the support level of 1.3382 remains intact. A climb above 1.3788 could reignite the rally that started from 1.3095, setting its sights on a full projection of the move from 1.3095 to 1.3697, extrapolated from 1.3382, which lands at 1.3984.
Expanding the view further reveals an intriguing development. The unfolding scenario strengthens the hypothesis that the corrective structure, which had its origins at the 2022 peak of 1.3980, might have drawn to a close after tracing three distinct waves down to 1.3095. Should the currency pair manage to break through the 1.3980 high decisively, it would be an affirmation of the uptrend’s revival that had its roots in the 2021 trough of 1.2009. With this scenario in play, the next bullseye could be the 61.8% projection of the move from 1.2405 to 1.3980, estimated from 1.3095, placing it at 1.4068. The longevity of this outlook hinges on the resilience of the 1.3382 support level.
Analysis Summary
USD/CAD’s intraday outlook remains neutral with a consolidation around 1.3788. While a deeper correction is possible, the bullish trend will likely persist if 1.3382 support stands. A potential breakout above the 2022 high of 1.3980 could signal a continuation of the upward trajectory.
Key Points
- USD/CAD’s consolidation at 1.3788 points to a neutral intraday sentiment.
- The 2022 high of 1.3980 remains a significant breakout point.
- Resilient 1.3382 support is pivotal for the bullish outlook.
