Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 15-MAY-2023

USD/CAD Daily Analysis

The current intraday bias for USD/CAD leans slightly towards the upside. The recent trends suggest that the recovery from 1.3313 could potentially represent another segment within the triangle pattern originating from 1.3976. We anticipate further escalation towards the 1.3666 resistance point. If that threshold is breached, the next target will be the 1.3860 resistance. However, if the value drops below the 1.3478 minor support, the intraday bias would shift to neutral.

Looking at the broader picture, the up trend from 1.2005 (2021’s low point) is expected to resume through 1.3976, as long as it remains above the 55 W EMA (now at 1.3321). However, if there is sustained trading below the EMA and the 38.2% retracement of the 1.2005 to 1.3976 range at 1.3233, the likelihood of a bearish reversal increases. In that case, a deeper retracement may occur, potentially down to the 61.8% retracement mark at 1.2758.

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