USD/CAD Daily Analysis
USD/CAD’s intraday bias remains neutral due to ongoing range trading. If the 1.3650 support holds, a further rally is anticipated. Breaking above 1.3860 would resume the rally from 1.3261 and retest the high of 1.3976. However, a decisive break of 1.3650 would create uncertainty in the short term outlook and could lead to a deeper pullback to the 55-day EMA, which is currently at 1.3566.
Looking at the bigger picture, the uptrend that began from the 2021 low of 1.2005 is still ongoing. If 1.3976 is breached, it will confirm the resumption of the uptrend and target 1.4234, which is the 61.8% projection of 1.2401 to 1.3976 from 1.3261. A firm break of this level would pave the way for the long-term resistance zone at 1.4667/89, which were the highs in 2016 and 2020. However, if 1.3261 support is breached, it would confirm a medium-term top. Otherwise, the outlook will remain bullish even in the event of a deep pullback.
