Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis 31-August-2022

USD/CAD Daily Analysis

Intraday bias in USD/CAD is back on the upside as a rebound from 1.2726 resumes after a brief retreat. The current rally should be seen to retest 1.3222 high next. Decisive break there will resume larger up trend. However, the break of 1.2893 will turn bias back to the downside for 1.2726 support instead.

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. 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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