Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 02-June-2023

USD/CAD Daily Analysis

USD/CAD Update and Intraday Analysis

Our daily analysis reveals an intraday bias shift in the USD/CAD pair, veering towards the downside, spurred by the breach of 1.3487 minor support. Our forecast points towards a more pronounced decline, albeit, it should be curtailed by the robust support threshold at 1.3303. Broadly speaking, the price movements transpiring from 1.3980 seem to configure a triangular consolidation pattern, suggesting a continued sideways trading trajectory. However, it’s essential to note in our daily update, any sustained breakthrough below 1.3233 may jeopardize this perspective and tilt the near-term outlook towards bearishness.

In a more comprehensive picture, our intraday outlook showcases a projected resurgence of the rise from 1.2009 (a low point recorded in 2021) through 1.3980 post-consolidation. In case of a decisive breach of 1.3980, the next target is estimated to be the 1.4671/93 long-term resistance zone. This scenario will continue to be the favored case in our USD/CAD daily analysis, so long as the 38.2% retracement of 1.2009 to 1.3980, pegged at 1.3237, remains intact. Hence, the emphasis on the 1.3237 point as a vital fulcrum in the USD/CAD intraday analysis cannot be understated. A sustainable breach below this point may alter the market dynamics.

USD/CAD Daily Analysis Summary

To Summarize the USD/CAD daily analysis, the USD/CAD indicates a bias shift toward the downside, with the potential for deeper falls capped by robust support at 1.3303. A decisive breach of 1.3980 could target the long-term resistance zone at 1.4671/93.

  • USD/CAD shows an intraday bias towards the downside due to minor support breach at 1.3487
  • Breaching 1.3980 after consolidation could target the long-term resistance zone at 1.4671/93

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