USD/CAD Daily Analysis
The intraday bias for USD/CAD remains on the downside, as the fall from 1.3860 is still in progress. This decline is viewed as the third leg of the corrective pattern from 1.3976, and a deeper fall towards the 1.3224/61 support zone may occur. However, strong support is expected in that area to bring about a rebound. To indicate the completion of the decline, a break of 1.3563 resistance is required, otherwise, further fall will remain in favor in case of a recovery.
In the bigger picture, the uptrend from the 2021 low of 1.2005 is still ongoing. A break of 1.3976 will confirm its resumption and target the 61.8% projection of 1.2401 to 1.3976 from 1.3261, which is at 1.4234. A firm break at that level will pave the way for a long-term resistance zone at 1.4667/89, which are the 2016 and 2020 highs. On the downside, a sustained break of the 55-week EMA (currently at 1.3282) is needed to confirm medium-term topping. Otherwise, the outlook will remain bullish even in the case of a deep pullback.
