USD/CAD UPDATE AND INTRADAY ANALYSIS
The USD/CAD pair has continued its upward trajectory, resuming the rise that initiated from the level of 1.3317. This price action has successfully surpassed the resistance barrier at 1.3569, leading to a restoration of the intraday bias in favor of further upside movement. The upcoming objective lies at the next notable resistance level of 1.3864. It is worth noting that the recent price movements subsequent to the peak at 1.3980 exhibit characteristics of a consolidation pattern resembling a triangle. A significant breach beyond the 1.3864 level would imply the resumption of the prevailing larger uptrend, targeting the previous high at 1.3980. Conversely, the intraday bias would revert to a neutral stance if the minor support level at 1.3487 is breached.
In a broader context, the overall trend remains bullish as long as the 55-week Exponential Moving Average (EMA) remains unbroken, currently positioned at 1.3337. This reinforces the anticipation of a future resumption of the uptrend originating from the 2021 low at 1.2009, setting the target at 1.3980. However, a sustained breach below both the EMA and the 38.2% retracement level of the advance from 1.2009 to 1.3980 would elevate the likelihood of a bearish reversal. In such a scenario, a deeper decline towards the 61.8% retracement level at 1.2762 would come into focus.
