Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 18-April-2023

USD/CAD Daily Analysis

The intraday bias for USD/CAD remains neutral as it continues to consolidate above the 1.3299 level. The fall from 1.3860 is viewed as the third leg of the corrective pattern from 1.3976, and if there is another decline, the downside should be limited to the 1.3224/61 support zone to bring about a rebound. If the 1.3552 level is broken, the bias will shift back to the upside, indicating a stronger rally.

In the bigger picture, the uptrend from the 2021 low of 1.2005 is still ongoing. A break above the 1.3976 level will confirm the resumption of the uptrend and target the 61.8% projection of the move from 1.2401 to 1.3976 from 1.3261 at 1.4234. A firm break above this level will pave the way for a long-term resistance zone at 1.4667/89 (the 2016 and 2020 highs). On the downside, a sustained break of the 55-week EMA (now at 1.3282) is required to confirm medium-term topping. Otherwise, the outlook will remain bullish even in the event of a deep pullback.

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