Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 08-FEB-2023

USD/CAD Daily Analysis

The current outlook for USD/CAD is neutral. Although the recent choppy decline from 1.3704 may continue, strong support is expected at 1.3224 to bring a rebound. A break above 1.3519 minor resistance would indicate a short-term bottom and shift the intraday bias back to the upside, targeting a retest of 1.3704 resistance. However, a decisive break below 1.3224 would have bearish implications.

From a long-term perspective, as long as the 1.3222 cluster support (38.2% retracement of 1.2005 to 1.3976 at 1.3223) holds, the overall upward trend from 1.2005 (2021 low) is still expected to resume towards 1.3976 high. But a firm break below 1.3222/3 would signal a potential reversal of the trend, leading to a deeper decline towards the next cluster support at 1.2726 (61.8% retracement at 1.2758).

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