USD/CAD UPDATE AND INTRADAY ANALYSIS
In today’s daily update, we analyze the intraday outlook for the USD/CAD pair. The current bias remains neutral, indicating a balanced market sentiment. The overall assessment suggests that the pair is in the process of extending the consolidation pattern in the form of a triangle, which originated from the level of 1.3983. A breakthrough above the resistance level at 1.3569 would resume the upward rebound that commenced from 1.3319, aiming towards the subsequent resistance levels at 1.3669 and 1.3867. However, it is important to monitor the support level at 1.3320 closely, as a firm break below this level would invalidate the current view and indicate the initiation of a deeper correction.
Zooming out to a broader perspective, the key focus remains on the 55-week Exponential Moving Average (EMA) positioned at 1.3340. As long as this level remains unbroken, the prevailing uptrend from the 2021 low at 1.2012 is expected to resume at a later stage, targeting the level of 1.3983. However, if there is sustained trading below the EMA and the 38.2% retracement level from 1.2012 to 1.3983, located at 1.3239, it would heighten the likelihood of a bearish reversal. In such a scenario, a deeper downward movement can be anticipated, with the next target being the 61.8% retracement level at 1.2765.
Looking ahead, traders should closely monitor the key levels mentioned and observe for decisive breakouts or breaches, which would provide further confirmation of the pair’s future direction. In the bullish scenario, a breakout above the resistance levels could pave the way for further upside potential. On the other hand, a bearish breakout below the support levels could lead to a deeper correction or downtrend.
Fundamental factors such as economic data releases, central bank decisions, and geopolitical developments should also be taken into account while assessing the USD/CAD pair’s outlook. Any surprises or shifts in these factors could influence the pair’s direction and add further volatility to the market.
USD/CAD Daily Analysis Summary
In summary, the USD/CAD pair currently exhibits a neutral bias in the intraday outlook, with a consolidation pattern forming. The broader outlook remains dependent on key support and resistance levels, with a potential for both bullish and bearish scenarios. Traders should remain vigilant and adapt their strategies based on the evolving market conditions and the confirmation of breakout levels.