USD/CAD Daily Forex analysis
The Daily Forex Analysis notes that USD/CAD is demonstrating a slowed pace of depreciation, as reflected in the 4H MACD. However, we anticipate further declines as long as the resistance at 1.3272 holds firm. The current drop from 1.3980 is expected to aim for a 100% projection of 1.3864 to 1.3303 from 1.3657 at 1.3096. A decisive break below this level would then bring the 161.8% projection at 1.2749 into focus. Conversely, if the 1.3272 resistance is broken, it would signify short-term bottoming, shifting the bias to the upside for a rebound.
Expanding our Daily Analysis, we view the fluctuations from 1.3980 as a potential correction to the uptrend that originated at 1.2009 (the 2021 low). However, the likelihood of a trend reversal is growing amid the current decline. In either scenario, continuous trading below the 38.2% retracement of the 1.2009 to 1.3980 rise at 1.3237 would clear a path towards the 61.8% retracement at 1.2762. The risk remains on the downside as long as the 1.3657 resistance holds, even in the event of a strong rebound.
USD/CAD Daily Analysis Summary
Despite the USD/CAD pair’s dwindling downside momentum, further declines are expected with 1.3272 acting as resistance. However, a break above this level could indicate short-term bottoming and signal a potential rebound.
Key Points
- USD/CAD’s downside momentum is slowing, but further declines are anticipated while 1.3272 resistance holds.
- A decisive break below 1.3096 would target the 161.8% projection at 1.2749.
- The potential for a trend reversal grows with the current decline, yet the risk remains skewed to the downside as long as 1.3657 resistance holds.
