Daily Forex Analysis – USD/CAD
Amidst recent trading activities, the USD/CAD pair has seen its rally pick back up after a short-lived pause, with the intraday sentiment now tilting decisively toward the bullish side. The ongoing surge in the pair’s value is eyeing a retest of the 1.3980 mark. Should it break through this level decisively, it’s expected that the larger upward trend will propel it toward a projected target of 1.4068. However, if the pair dips below the minor support level of 1.3816, the immediate bullish bias might shift to a neutral stance.
The corrective phase observed from the 2022 peak of 1.3980 seems to have completed a three-wave decline, bottoming at 1.3095. A decisive climb beyond the 1.3980 high will cement the trend’s upward trajectory from the 2021 low of 1.2009. The next milestone is projected at 1.4068, representing a 61.8% projection from the rise of 1.2405 to 1.3980, starting at 1.3095. This bullish scenario is expected to remain the predominant narrative as long as the 1.3572 support level is maintained.
Analyzing the movements of the USD/CAD pair in 2023, we can observe a clear preference for upward momentum, reflective of the broader economic dynamics influencing both the U.S. dollar and the Canadian dollar. Factors such as commodity price fluctuations, differing monetary policies of the Federal Reserve and the Bank of Canada, and global economic conditions could play significant roles in future price actions. Traders should closely monitor these support and resistance levels, as they are likely to be pivotal in the pair’s price trajectory.
Analysis Summary
The USD/CAD pair’s renewed bullish momentum aims for 1.3980, with the potential to extend to 1.4068. The trend’s strength will be confirmed by breaking past 1.3980, reflecting the continuation from the 2021 low of 1.2009. Support at 1.3572 remains key for maintaining this bullish outlook.
Key Bullet Points
- Bullish bias targets retest at 1.3980.
- A break beyond 1.3980 may lead to 1.4068.
- Support at 1.3572 is crucial for trend maintenance.
