USD/CAD Daily Forex Analysis
Our Daily Forex Analysis indicates that the intraday bias for USD/CAD remains mildly on the upside. The pair is currently experiencing a rebound from the short-term bottom at 1.3115, with a potential target of 1.3229, which now serves as a resistance level. A firm break above this resistance would extend the rebound toward the 55-day Exponential Moving Average (EMA) currently positioned at 1.3384. However, a break below 1.3115 is required to confirm the resumption of the recent decline. Otherwise, we may observe more consolidative trading before a potential retreat.
Taking a broader perspective, the price actions from 1.3976 are still considered a correction within the overall uptrend from 1.2005 (2021 low). However, the probability of a trend reversal has increased due to the ongoing decline. In either scenario, the downside risk remains as long as the support-turned-resistance level at 1.3299 holds, even in the case of a strong rebound. The next target would be the 61.8% retracement of the upward move from 1.2005 to 1.3976, located at 1.2758. Sustained trading above 1.3229 would raise the likelihood that the correction has been completed and shift the focus back to the resistance at 1.3653.
USD/CAD Daily Analysis Summary
To summarize, our Daily Analysis suggests that the intraday bias for USD/CAD is currently mildly on the upside, with a rebound from the short-term bottom. The broader picture indicates a correction within the overall uptrend, but the possibility of a trend reversal should be considered. The key levels to watch are 1.3229 as resistance and 1.3115 as support.
Key takeaways
- Intraday bias for USD/CAD remains mildly on the upside.
- The resistance-turned-support level at 1.3229 is a target for the rebound.
- Downside risk persists as long as 1.3299 holds as resistance.
