Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 13-FEB-2023

USD/CAD Daily Analysis

At present, the intraday bias for USD/CAD remains neutral. The choppy decline from 1.3704 may continue, but strong support is anticipated at the key level of 1.3224, which should lead to a rebound. If the price rises above the resistance level of 1.3519, this would signal a short-term bottom and the intraday bias would shift back to the upside, with the goal of retesting the resistance of 1.3704. However, if 1.3224 is decisively broken, this would carry larger bearish implications.

In the broader perspective, as long as the 1.3222 cluster support (which is the 38.2% retracement of 1.2005 to 1.3976 at 1.3223) holds, the larger uptrend from 1.2005 (2021 low) is still expected to resume at a later stage, reaching the 1.3976 high. However, if the support level of 1.3222/3 is firmly broken, this would indicate a potential reversal of the trend. In this case, a deeper fall could be expected, reaching the next cluster support at 1.2726 (61.8% retracement at 1.2758).

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