Detailed FX Market Outlook and Analysis

Daily Forex Analysis – USD/CAD – 11-July-2023

Daily Forex Analysis

USD/CAD Daily Forex Analysis

Today’s daily forex analysis spotlights the USD/CAD pair. The intraday analysis shows a neutral bias, with the overall outlook remaining steady. A breakthrough above 1.3390 and consistent trading above the 55 Day Exponential Moving Average (DEMA), currently sitting at 1.3363, would suggest the comprehensive corrective pattern from 1.3980 might have reached completion after a three-wave descent to 1.3119. This scenario would likely pave the way for a further surge towards the next resistance point at 1.3657.

However, it’s important in this daily analysis to also consider a potential downturn. If we observe a breach of the 1.3206 support, this could lead to a retest of the 1.3119 low.

From a wider perspective, the movements from 1.3980 appear to be a mere correction of the upward trend that originated from 1.2009 (the low of 2021). As a result, it’s more likely we’ll see a resumption of the upward trend through 1.3980 at a later stage. Nevertheless, a second drop below 1.3119 could extend the fall from 1.3980 to the 61.8% retracement of 1.2009 to 1.3980 at 1.2762, thereby increasing the chances of a bearish trend reversal.

USD/CAD Daily Analysis Summary

To summarize, the USD/CAD intraday analysis suggests a neutral bias with the possibility of a surge if the pair breaches 1.3390. However, a break of 1.3206 could lead to a retest of the 1.3119 low. In the bigger picture, the trend is likely to resume upward, but a further drop below 1.3119 could shift the chances towards a bearish reversal.

Key takeaways

  1. The USD/CAD intraday analysis shows a neutral stance, with a potential rally if 1.3390 is breached.
  2. A break below 1.3206 could lead to a retest of the 1.3119 low.
  3. The overall trend might resume upward, but another drop below 1.3119 may shift the likelihood towards a bearish reversal.

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