Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 22-FEB-2023

USD/CAD Daily Analysis

After a brief pullback, the rally in USD/CAD has resumed, and the intraday bias is now bullish. The outlook remains unchanged, with the corrective pattern from 1.3967 thought to have been completed at 1.3261. The next target is 1.3684 resistance, with a break there leading to a retest of the 1.3976 high. However, if the 1.3440 support level is broken, the bullish outlook will be dampened, and the intraday bias will turn neutral initially.

In the larger picture, the larger uptrend from the 2021 low of 1.2005 is still expected to resume and test the 1.3976 high again, as long as the 1.3222 cluster support level (38.2% retracement of the move from 1.2005 to 1.3976 at 1.3223) holds. However, a decisive break of 1.3222/3 would indicate a possible trend reversal. This would lead to a deeper decline to the next cluster support at 1.2726 (61.8% retracement at 1.2758).

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