Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 08-DEC-2022

USD/CAD Daily Analysis

USD/CAD is losing some upside momentum, as seen in the 4-hour MACD. But the further rally is still in favor. Correction from 1.3976 could have been completed with three waves down to 1.3224. The further rise should be seen to 1.3807 resistance first and then 1.3976. This will remain the favored case as long as 1.3383 support holds in case of retreat.

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).

Latest Analysis