Daily Forex Analysis – USD/CAD
The current intraday bias in the USD/CAD pair indicates a downward trend. The fall from 1.3857, a part of the corrective pattern starting from 1.3901, suggests the potential for a further decline towards 1.3631 and possibly lower. Notably, significant support is anticipated around the 38.2% retracement level of 1.3095 to 1.3901, located at 1.3593, which could catalyze a rebound. A later-stage break above 1.3901 is expected, which would signal a resumption of the broader rally.
From a larger perspective, the corrective pattern from the 2022 high of 1.3980 is likely completed with its three-wave decline ending at 1.3095. A decisive break above the 1.3980 high will affirm the continuation of the upward trend that began at the 2021 low of 1.2009. The next target would be the 61.8% projection of 1.2405 to 1.3980 from 1.3095, calculated at 1.4068. This bullish scenario remains probable as long as the support at 1.3382 holds.
Analysis Summary
The USD/CAD pair is experiencing a downward intraday bias with a potential rebound from the 1.3593 support level. A decisive break above 1.3980 would confirm the continuation of the upward trend. The pair’s outlook remains bullish if it sustains above the 1.3382 support.
Key Points
- The downward trend in USD/CAD with a potential rebound from 1.3593.
- Break above 1.3980 to confirm upward trend continuation.
- Bullish outlook as long as support at 1.3382 holds.
