Detailed FX Market Outlook and Analysis

Daily Forex Analysis – USD/CAD – 5-June-2023

USD/CAD daily Forex Analysis

USD/CAD Daily Forex Analysis

The focus of today’s Daily Forex Analysis is the USD/CAD pair. The intraday outlook remains neutral for now, with the overall sentiment remaining constant. A temporary base appears to have established at 1.3119, thus, a minor uptrend is slightly favored. Should a break of 1.3288 occur, it would facilitate the recovery from 1.3119 towards the 55  EMA, currently located at 1.3377.

For a more extensive perspective in our daily analysis, the price movements originating from 1.3980 continue to be perceived as a correction to the upward trend that began at 1.2009 (the 2021 low). The risk seems to lean towards the downside as long as the 1.3303 level, which transitioned from support to resistance, holds firm. The next target in sight is the 61.8% retracement of the upward movement from 1.2009 to 1.3980, located at 1.2762. However, continuous trading above 1.3233 may increase the probability that the correction phase has concluded and shift the focus back toward the resistance at 1.3657.

USD/CAD Daily Analysis Summary

To conclude, the Daily Forex Analysis shows that USD/CAD’s bias remains neutral with a slight preference towards an upward movement. The pair might continue to recover from the 1.3119 level if the resistance at 1.3288 breaks. In the bigger picture, the downside risk prevails unless sustained trading above 1.3233 is achieved.

Key Points

  • The pair holds a neutral bias with a possible rise from the 1.3119 bases if the 1.3288 resistance breaks.
  • The risk remains on the downside with the next target at 1.2762, given the 1.3303 resistance level holds.
  • Sustained trading above 1.3233 could indicate the end of the correction phase, shifting the focus back to 1.3657 resistance.

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