Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 23-FEB-2023

USD/CAD Daily Analysis

The USD/CAD pair’s intraday bias is still on the upside, as there is a rebound from 1.3261 in progress. The pair is expected to rally further towards the resistance level of 1.3684. If the pair can sustain a break above this level, it will pave the way for a retest of the high at 1.3976. However, if the pair breaks below the support level of 1.3440, it will weaken the bullish case and turn the intraday bias neutral.

Looking at the bigger picture, as long as the cluster support level of 1.3222 (which is the 38.2% retracement of 1.2005 to 1.3976 at 1.3223) holds, the larger uptrend from the 2021 low of 1.2005 is expected to resume through the high of 1.3976 at a later stage. However, if there is a firm break of 1.3222/3, it will indicate that the trend might have reversed. In this case, a deeper fall can be expected towards the next cluster support level at 1.2726, which is the 61.8% retracement level at 1.2758.

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