Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 12-MAY-2022

USD/CAD Daily Analysis

Intraday bias in USD/CAD remains neutral for consolidation below 1.3050. Further rally is expected as long as 1.2712 support holds. On the upside, a Sustained break of 1.3022 Fibonacci level 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. However, the break of 1.2712 will indicate rejection by the 1.3022 Fibonacci level and turn bias to the downside.

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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