Detailed FX Market Outlook and Analysis

USD/CAD Daily Forex Analysis: Range Trade and Key Levels

USD/CAD Daily Forex Analysis

USD/CAD Daily Forex Analysis

Delving into our Daily Forex Analysis, the USD/CAD pair continues to exhibit range-bound behavior, with the intraday bias remaining neutral. We foresee the potential for a further slide as long as the resistance at 1.3390 continues to hold. A drop beneath the 1.3095 markers would suggest the resumption of a broader downturn, targeting a 61.8% projection from 1.3657 to 1.3119, taking the pair down to 1.3058. However, a firm breakthrough beyond 1.3390 could signal an imminent reversal and cast a bullish glow on the near-term outlook.

Expanding our scope to the broader picture, we view the price dynamics from 1.3980 (2022 high) as a mere correction in the upward trajectory that began at 1.2009 (2021 low). Nonetheless, we expect a deeper slide as long as the 1.3390 resistance level persists. Additional declines could target the 61.8% retracement from 1.2009 to 1.3980, potentially hitting 1.2762. On the flip side, breaking the 1.3390 resistance level could indicate the completion of the correction, triggering a more robust rally to retest the 1.3980 high.

USD/CAD Intraday Analysis Summary

In summary, the USD/CAD pair remains range-bound with a bearish inclination. A firm break above 1.3390 would signal a bullish reversal, while a breach below 1.3095 could extend the current downtrend. Key levels to watch are 1.3390 on the upside and 1.3058 on the downside.

Key Points:

  • The USD/CAD pair remains range-bound, with a neutral intraday bias.
  • A firm breakthrough above 1.3390 could signal a bullish reversal.
  • A breach below 1.3095 could trigger further declines, potentially down to 1.3058.

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