Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 10-MAY-2022

USD/CAD Daily Analysis

USD/CAD’s rally continued and met the 1.3022 Fibonacci level already. There is no sign of topping yet and intraday bias stays on the upside. A sustained break of 1.3022 will carry larger bullish implications. The next target will be a 100% projection of 1.2005 to 1.2947 from 1.2401 at 1.3343. On the downside, below 1.2907 minor support will turn intraday bias neutral first. But the further rally will remain in favor as long as 1.2712 support holds.

In the bigger picture, the focus stays on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. A sustained break there should confirm that the downtrend from 1.4667 has been completed after defending 1.2061 long-term cluster support. A further rise would then be seen towards 61.8% retracement at 1.3650. However, rejection by 1.3022 will maintain medium-term bearishness. A break of 1.2005 will resume the downtrend from 1.4667 and that carries larger bearish implications too.

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