Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 26-August-2022

USD/CAD Daily Analysis

Intraday bias in USD/CAD remains neutral and the outlook is unchanged. The corrective decline from 1.3222 could have been completed with three waves down to 1.2726. Above 1.3062 will resume the rebound to retest the 1.3222 high. However, the break of 1.2826 support will dampen this view and turn bias back to the downside for 1.2726 and possibly below.

In the bigger picture, the downtrend from 1.4667 (2020 high) should have completed at 1.2005, after defending 1.2061 long-term cluster support. The rise from there should target a 61.8% retracement of 1.4667 to 1.2005 (2021 low) at 1.3650. This will remain the favored case now as long as 1.2516 support holds.

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