Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 10-FEB-2023

USD/CAD Daily Analysis

The outlook for USD/CAD remains unchanged, with a neutral intraday bias. Although the recent choppy decline from 1.3704 may extend further, strong support is expected at the key level of 1.3224, which could trigger a rebound. A break above the minor resistance at 1.3519 would signal a short-term bottom and shift the intraday bias to the upside for a retest of the 1.3704 resistance. However, a decisive break below 1.3224 would have bearish implications.

In the bigger picture, as long as the 1.3222 cluster support (at the 38.2% retracement of the range between 1.2005 and 1.3976) holds, the larger upward trend from 1.2005 (2021 low) is still expected to resume and reach the 1.3976 high in the future. However, a firm break below the 1.3222/3 cluster would indicate a potential trend reversal. In this case, a deeper decline to the next cluster support at 1.2726 (61.8% retracement at 1.2758) would be likely.

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