USD/CAD Daily Analysis
Currently, the intraday bias for USD/CAD remains neutral. The consolidation phase from 1.3860 may continue, but any downside is expected to be contained by the support level at 1.3664 to bring about another rally. A break above the 1.3860 resistance level would resume the upswing from 1.3261 and may result in a retest of the 1.3976 high. However, a firm break of the 1.3664 support level could complicate the near-term outlook and lead to a deeper pullback initially.
Looking at the bigger picture, the uptrend from the 2021 low of 1.2005 is still ongoing. A break of the 1.3976 level would confirm this trend resumption, with a target of the 61.8% projection level of the upswing from 1.2401 to 1.3976 from 1.3261 at 1.4234. A firm break above this level would pave the way for the long-term resistance zone at 1.4667/89, which represent the 2016 and 2020 highs. On the downside, a break of the 1.3261 support level is necessary to confirm medium-term topping. Otherwise, the outlook will remain bullish even in the event of a deep pullback.
