USD/CAD Daily Analysis
The USD/CAD intraday bias is currently neutral and there have been no changes to the outlook. The pair’s choppy decline from 1.3704 may continue to decrease, but a rebound is expected at the key support level of 1.3224. If the resistance level of 1.3519 is surpassed, it will confirm a short-term bottom and turn the intraday bias to the upside, leading to a retest of the 1.3704 resistance level. However, a decisive break of the 1.3224 support level would have larger bearish implications.
Looking at the bigger picture, the larger uptrend from the 2021 low of 1.2005 is expected to resume through the high of 1.3976 at a later stage, as long as the 1.3222 cluster support level (which is the 38.2% retracement of 1.2005 to 1.3976 at 1.3223) holds. If the 1.3222/3 level is strongly broken, it may indicate a reversal of the trend, resulting in a deeper fall towards the next cluster support level of 1.2726 (which is the 61.8% retracement level at 1.2758).
