Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 12-April-2023

USD/CAD Daily Analysis

There is currently no clear intraday bias in the USD/CAD market, and the likelihood of another fall is favored as long as the minor resistance level at 1.3563 remains intact. A break below 1.3405 will signal a continuation of the downward trend from 1.3860, which is the third leg of the corrective pattern from 1.3976, leading to a support zone at 1.3224/61. However, a strong support level is expected around that zone, leading to a rebound. Conversely, if there is a firm break above 1.3563, the bias will shift to the upside, targeting a resistance level of 1.3860.

Looking at the bigger picture, the upward trend from the 2021 low of 1.2005 is still ongoing. A break above 1.3976 will confirm a resumption of the upward trend and target the 61.8% projection of the move from 1.2401 to 1.3976 from 1.3261, reaching 1.4234. A firm break above this level will pave the way for the long-term resistance zone at 1.4667/89, which were the highs in 2016 and 2020. A sustained break below the 55 week EMA, currently at 1.3282, is necessary to confirm a medium-term top. Otherwise, the outlook remains bullish, even in the case of a deep pullback.

Latest Analysis