Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 19-MAY-2023

USD/CAD Daily Analysis 19-5

USD/CAD Update and Intraday Analysis

In today’s daily analysis of the USD/CAD market, we notice the persistence of range trading. The market sentiment remains balanced for the time being. On the whole, the pair seems to be carrying forward the triangular consolidation pattern from a slightly upgraded number, 1.3980. If the value ascends past 1.3570, we can expect a rekindling of the rebound towards the resistance of 1.3670, potentially even reaching 1.3864.

However, should there be a solid break below the support level of 1.3317, this would challenge the current viewpoint and suggest the initiation of a more profound correction process. This is one of the key takeaways from today’s daily analysis.

Shifting our focus to the broader picture as part of our daily analysis, the outlook remains bullish for the trend originating from 1.2009 (low of 2021) to continue as long as the 55 W EMA, now standing at 1.3325, holds. The daily update would see the resumption of this trend through 1.3980 at a later phase.

On the other hand, if there is sustained trading beneath the EMA and 38.2% retracement of the journey from 1.2009 to 1.3980, now at 1.3237, this would increase the possibility of a bearish reversal. The daily update, in such a scenario, would then predict a deeper fall towards the 61.8% retracement, now at 1.2762.

In essence, today’s intraday analysis of USD/CAD update emphasize the importance of careful monitoring of the USD/CAD pair. The daily analysis points to potential shifts in the market sentiment that could either trigger a rebound or incite a deeper correction, based on how current resistance and support levels evolve.

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