USD/CAD Daily Analysis
The USD/CAD has defended the support level of 1.3650 once again and has recovered. The intraday bias remains neutral for now. If there is a break of the upside at 1.3860, the rally from 1.3261 will resume and retest the high of 1.3976. However, if there is a firm break of the support level of 1.3650, it will mix up the near term outlook and lead to a deeper pullback to the 55 day EMA, which is currently at 1.3578.
Looking at the bigger picture, the upward trend from the 2021 low of 1.2005 is still in progress. If there is a break of 1.3976, it will confirm the resumption of the trend and target the 61.8% projection of 1.2401 to 1.3976 from 1.3261, which is at 1.4234. A firm break there will pave the way for the long-term resistance zone at 1.4667/89, which includes the highs of 2016 and 2020. On the downside, a break of the support level of 1.3261 is needed to confirm the medium-term topping. Otherwise, the outlook will remain bullish even in case of a deep pullback.
