Daily Forex Analysis – USD/CAD
For now, the USD/CAD currency pair exhibits a neutral intraday sentiment. The consolidation phase that started at 1.3788 might experience further extensions. Should the currency pair overcome the 1.3788 resistance with conviction, it would pave the way for the continuation of the upward trajectory that originated from 1.3095, aiming for the retest of the 1.3980 pinnacle. Conversely, a decline below the 1.3619 support could signal an impending downward shift, extending the short-term corrective trend that began at 1.3788.
From a more overarching standpoint, recent patterns seem to reinforce the possibility that the correction phase, which started from the 2022 peak of 1.3980, might have reached its conclusion after descending in three waves to 1.3095. A firm breach above the 1.3980 threshold would vouch for the rejuvenation of the bullish trend, which had its roots in the 2021 nadir of 1.2009. The ensuing bullish projection is earmarked at the 61.8% extension of the rally from 1.2405 to 1.3980, commencing from 1.3095 and settling at 1.4068. This bullish scenario remains the predominant anticipation, provided the 1.3382 support persists.
Analysis Summary
USD/CAD’s current neutral stance may soon waver. Surpassing 1.3788 could lead to a retest of the 1.3980 high, while breaking 1.3619 may deepen corrections. The broader outlook suggests a potential bullish resumption from 2021’s low, targeting 1.4068, contingent on the 1.3382 support’s strength.
Key Takeaways
- Neutral sentiment persists in USD/CAD, with the potential to breach 1.3788.
- The downward shift is possible if 1.3619 is compromised.
- Broader trends indicate a bullish revival with a 1.4068 target.
