Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 01-JAN-2023

USD/CAD Daily Analysis

Intraday bias in USD/CAD has turned neutral with the current recovery. The corrective structure of the price actions from 1.3699 argues that the rise from 1.3224 is not finished. A break of 1.3704 will target a 61.8% projection of 1.3224 to 1.3669 from 1.3468 at 1.3762 and then a 100% projection at 1.3943. On the downside, the break of 1.3468 will bring a deeper pullback first.

In the bigger picture, as long as 1.3222 cluster support (38.2% retracement of 1.2005 to 1.3976 at 1.3223) holds, the larger up trend from 1.2005 (2021 low) is still expected to resume through the 1.3976 high at a later stage. However, a firm break of 1.3222/3 will indicate that the trend might have reversed. A deeper fall would be seen in the next cluster support at 1.2726 (61.8% retracement at 1.2758).


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