Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 01-June-2022

USD/CAD Daily Analysis

USD/CAD’s fall from 1.3075 is still in progress and intraday bias stays on the downside for 1.2401 support. A firm break there will argue that the whole rebound from 1.2005 has been completed. A deeper fall would then be seen to retest this low. On the upside, though, above 1.2884 minor resistance will revive near-term bullishness and turn bias back to the upside for the 1.3075 high.

In the bigger picture, the focus stays on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. A sustained break there should confirm that the downtrend from 1.4667 has been completed after defending 1.2061 long-term cluster support. A further rise would then be seen towards 61.8% retracement at 1.3650. However, rejection by 1.3022 will maintain medium-term bearishness. A break of 1.2005 will resume the downtrend from 1.4667 and that carries larger bearish implications too.

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