USD/CAD Daily Forex Analysis
Today’s daily forex analysis is focused on the USD/CAD pair, which currently shows an intraday bias towards the downside, aiming for a retest of the 1.3555 low. A firm break through this level could trigger a larger downtrend, with the initial target being the 61.8% projection of 1.4057 to 1.3555 from 1.3786 at 1.3498, followed by a potential dive towards 1.3248. As long as the resistance at 1.3786 holds, any potential recovery would not alter the current bearish outlook.
Taking a step back, the price actions from 1.4376, in our daily analysis, are perceived as merely a correction to the uptrend that began at 1.2405 in 2021. This suggests that the uptrend might still find its way back to 1.4376 at a later date. However, an additional drop below 1.3555 would extend the decline from 1.4376 to the 61.8% retracement of 1.2405 to 1.4376 at 1.3158, thereby increasing the probability of a bearish trend reversal.
USD/CAD Daily Analysis Summary
To summarize, the USD/CAD pair’s intraday outlook remains tilted to the downside, with a potential retest of the 1.3555 low. The bearish outlook is likely to persist as long as the 1.3786 resistance holds, despite any recovery efforts. However, the overall analysis suggests the current phase might be a temporary setback in a broader uptrend, though a further drop could signal a bearish reversal.
Key Points:
1. The USD/CAD intraday analysis indicates a bias to the downside, targeting a retest of the 1.3555 low.
2. Despite any short-term recovery, the bearish outlook will persist as long as the resistance at 1.3786 holds.
3. In a larger context, while the uptrend may resume later, an additional fall below 1.3555 could signal a bearish trend reversal.
