USD/CAD Daily Analysis
The intraday bias for USD/CAD remains on the downside at this point. A strong break of 1.3299 will extend the corrective pattern from 1.3976 lower, towards the 100% projection level of 1.3976 to 1.3224 from 1.3860, which is at 1.3395. However, on the upside, if the minor resistance level of 1.3389 is surpassed, the intraday bias will become neutral.
In the bigger picture, as long as the 55-week EMA (currently at 1.3312) holds, the uptrend from the 2021 low of 1.2005 is expected to resume through 1.3976 at a later stage. However, if there is sustained trading below the EMA and the 38.2% retracement level of 1.2005 to 1.3976 at 1.3233, there is a higher chance of a bearish reversal. A deeper drop may then be seen towards the 61.8% retracement level at 1.2758.
