Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 09-FEB-2023

USD/CAD Daily Analysis

The outlook for USD/CAD remains neutral for the intraday period. Despite the possibility of the currency pair continuing its choppy decline from 1.3704, a strong rebound is expected to occur at the key support level of 1.3224. If it rises above the minor resistance of 1.3519, the intraday bias will shift back to the upside, potentially leading to a retest of the 1.3704 resistance. However, a clear break below 1.3224 would indicate a more significant bearish trend.

In the long term, as long as the 1.3222 support cluster (which includes the 38.2% retracement of the 1.2005 to 1.3976 range at 1.3223) remains intact, the upward trend from 1.2005 is still expected to resume, ultimately leading to a test of the 1.3976 high. However, a firm break below 1.3222/3 would indicate a potential reversal of this trend, with the currency pair potentially falling further to the next support cluster at 1.2726 (61.8% retracement at 1.2758).

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