Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 26-MAY-2022

USD/CAD Daily Analysis

Intraday bias in USD/CAD remains neutral and the outlook is unchanged. Further rise is mildly in favor with 1.2712 support intact. On the upside, the break of 1.3075 will resume the rise from 1.2401. Sustained trading above the 1.3022 Fibonacci level will carry more significant bullish implications. The next target will be a 100% projection of 1.2005 to 1.2947 from 1.2401 at 1.3343. On the downside, however, the break of 1.2712 support will indicate rejection by 1.3022 key Fibonacci resistance and bring a deeper decline back to 1.2401 support.

In the bigger picture, the focus stays on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. A sustained break there should confirm that the downtrend from 1.4667 has been completed after defending 1.2061 long-term cluster support. A further rise would then be seen towards 61.8% retracement at 1.3650. However, rejection by 1.3022 will maintain medium-term bearishness. A break of 1.2005 will resume the downtrend from 1.4667, which carries more significant bearish implications.

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