USD/CAD Daily Forex Analysis
In this Daily Forex Analysis, we observe that the descent of the USD/CAD pair is ongoing, with the intraday outlook leaning towards the downside. The breaking of the 1.3155 barrier suggests a revival of the larger downtrend. The next targets are the 61.8% projection of 1.3693 to 1.3155 from 1.3426 at 1.3094, and subsequently, the 100% projection at 1.2888. Should we witness a rise above the minor resistance at 1.3273, the intraday bias will switch to neutral. However, even in the event of a recovery, the outlook will persist as bearish, given that the 1.3426 resistance holds.
When we consider the larger context in our daily analysis, we see that the price movements from 1.4016 are being perceived as merely a correction to the uptrend that began at 1.2045 (low of 2021). As a result, the aforementioned uptrend is predicted to continue past 1.4016 in future stages. That said, a further drop below 1.3155 could prolong the decline that originated from 1.4016 to the 61.8% retracement of 1.2045 to 1.4016 at 1.2798, thereby increasing the likelihood of a bearish trend reversal.
USD/CAD Daily Analysis Summary
The USD/CAD pair’s downturn continues, with the intraday bias favouring the downside. A break above the 1.3273 minor resistance would switch the intraday bias to neutral, but the bearish outlook would remain as long as the 1.3426 resistance holds. A broader perspective reveals the potential for the uptrend from 1.2045 (2021 low) to resume, although another drop below 1.3155 could herald a bearish trend reversal.
Key Points
- The USD/CAD’s decline persists, with an intraday bias towards the downside. The next targets are 1.3094 and 1.2888.
- A rise above the minor resistance at 1.3273 will neutralise the intraday bias, but the bearish outlook will remain provided the 1.3426 resistance holds.
- In the broader context, an uptrend from 1.2045 is predicted to continue, but a further fall below 1.3155 could signal a bearish trend reversal.
