Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 27-MAR-2023

USD/CAD Daily Analysis

The USD/CAD intraday bias is currently neutral, with a possibility of an extension of consolidation from 1.3860. However, a further rally is expected as long as the support at 1.3629 is held. If a firm break of 1.3860 occurs, the high at 1.3976 will be the next target. But, a break of 1.3629 will create uncertainty for the near-term outlook and lead to a deeper pullback to the 55 day EMA, which is currently at 1.3584.

Looking at the bigger picture, the uptrend from the 2021 low of 1.2005 is still ongoing. If there is a break of the high at 1.3976, it will confirm the resumption of the uptrend and target the 61.8% projection of the move from 1.2401 to 1.3976 from 1.3261, which is at 1.4234. A firm break above this level will pave the way to a long-term resistance zone at 1.4667/89, which were the highs of 2016 and 2020. On the downside, a break of 1.3261 support is needed to confirm a medium-term topping. Otherwise, the outlook will remain bullish even in the case of a deep pullback.

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